Abstract
Several important trading rules were introduced in NASDAQ in 1997. The trading reforms have significantly reduced bid–ask spreads on NASDAQ. This decrease is due to a decrease in market-making costs and/or an increase in market competition for order flows. In addition, in the post-reform period, the spread difference between NASDAQ and the NYSE becomes insignificant with the effect of informed trading costs controlled. , Abstract Several important trading rules were introduced in NASDAQ in 1997. The trading reforms have significantly reduced bid–ask spreads on NASDAQ. This decrease is due to a decrease in market-making costs and/or an increase in market competition for order flows. In addition, in the post-reform period, the spread difference between NASDAQ and the NYSE becomes insignificant with the effect of informed trading costs controlled.
Cite
CITATION STYLE
He, Y. (2013). The 1997 NASDAQ Trading Rules. In Encyclopedia of Finance (pp. 329–331). Springer US. https://doi.org/10.1007/978-1-4614-5360-4_18
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