Would order-by-order auctions be competitive?

• Main Authors: ERNST, Thomas, SPATT, Chester, SUN, Jian
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2023
• 主題: Order By Order Competition; Auctions; Retail Trading; Routing; Brokers; PFOF; Finance and Financial Management; Portfolio and Security Analysis
• 在線閱讀: https://ink.library.smu.edu.sg/lkcsb_research/7358; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8357/viewcontent/SSRN_id4300505_Jun_2023.pdf

We model two different methods of executing segregated retail orders: broker's routing, whereby brokers allocate orders using market maker's overall performance, and order-by-order auctions, where market makers bid on individual orders, a recent SEC proposal. Order-by-order auctions improv...