What Is Market Fragmentation?
Potential Costs of Fragmentation
The Asymmetric Information Channel: Intuition
The Risk Sharing Channel
Order Splitting Can Solve the Problem
3) The Imperfect Competition Channel
4) The Search Cost Channel
Liquidity Externalities
More Competition Among Liquidity Providers in LOB Markets
Also, fragmentation increases the speed of order execution
fragmentation does not impact market-making revenues
Fragmented stocks are more volatile
Variance ratio is significantly smaller for fragmented sample
Fragmentation lowers effective spreads
Market Transparency
Why Market Transparency Matters
Pre-Trade Transparency
Post-Trade Transparency
Four Key Takeaways Concerning Market Transparency
Pre- vs. Post-Trade Transparency
Zuletzt geändertvor einem Jahr
