Lifting the Veil: An Analysis of Pre-trade Transparency at the NYSE

• Main Authors: BOEHMER, Ekkehart, SAAR, Gideon, YU, Lei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Business; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4661; https://doi.org/10.1111/j.1540-6261.2005.00746.x
• Institution: Singapore Management University

We study pre-trade transparency by looking at the introduction of NYSE's OpenBook service that provides limit-order book information to traders off the exchange floor. We find that traders attempt to manage limit-order exposure: They submit smaller orders and cancel orders faster. Specialists&#...