search query: @freeterm Transactions / total: 5
reference: 4 / 5
| Author: | Bloomfield, R. O'Hara, M. |
| Title: | Market transparency: Who wins and who loses ? |
| Journal: | Review of Financial Studies
1999 : SPRING, VOL. 12:1, p. 5-35 |
| Index terms: | Stock markets Efficiency Information |
| Freeterms: | Transactions Transparency |
| Language: | eng |
| Abstract: | This study uses laboratory experiments to determine the effects of trade and quote disclosure on market efficiency, bid-ask spreads, and trader welfare. It is shown that trade disclosure increases the informational efficiency of transaction prices, but also increases opening bid-ask spreads, apparently by reducing market-makers' incentives to compete for order flow. As a result, trade disclosure benefits market makers at the expense of liquidity traders and informed traders. It is found that quote disclosure has no discernible effects on market performance. Overall the results demonstrate that the degree of market transparency has important effects of market equilibria and on trader and market-maker welfare. |
SCIMA