Premium
Merging Markets
Author(s) -
Arnold Tom,
Hersch Philip,
Mulherin J. Harold,
Netter Jeffry
Publication year - 1999
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/0022-1082.00137
Subject(s) - competitor analysis , stock exchange , business , competition (biology) , order (exchange) , listing (finance) , stock (firearms) , market maker , financial economics , stock market , economics , geography , finance , marketing , ecology , context (archaeology) , archaeology , biology
We study the causes and effects of the competition for order flow by U.S. regional stock exchanges. We trace the origins of competition for order flow to a change in the role of regional exchanges from being venues for listing local securities to being more direct competitors for the order flow of NYSE listings. We study the way regionals competed for order flow, concentrating on a series of stock‐exchange mergers that occurred in the midst of this transition of the regional exchanges. The merging exchanges attracted market share and experienced narrower bid‐ask spreads.