A cross-exchange comparison of execution costs and information flow for NYSE-listed stocks

Article Abstract:

An analysis of execution rates for trades in NYSE issues completed on the NYSE, the NASD dealer market, and the regional stock exchanges in 1994 revealed that effective bid-ask spreads are only modestly larger for trades executed off the NYSE. However, trades in NYSE issues negotiated off the NYSE has less information than trades executed on the NYSE. This finding indicates the success of non-NYSE makers to 'cream skim' a subset of trades that is processed at lesser rates. Thus, realized bid-ask spreads are smaller on the NYSE by a factor of two or three.

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Quote-based competition and trade execution costs in NYSE-listed stocks

Article Abstract:

The quotations, order routing, and trade execution costs for seven markets that compete for orders in large-capitalization NYSE-listed stocks are examined. The results indicate significant degree of quote-based competition for order flow.

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Does an electronic stock exchange need an upstairs market?

Article Abstract:

A study of the Paris Bourse and how allowing more flexibility in operating out of the quoted blocks can enhance market quality is discussed.

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