If you are experiencing problems downloading PDF or HTML fulltext, our helpdesk recommend clearing your browser cache and trying again. If you need help in clearing your cache, please click here . Still need help? Email help@ingentaconnect.com

Do uninformed crossed and internalized trades tap into unexpressed liquidity? The case of Nokia

$48.00 plus tax (Refund Policy)

Download / Buy Article:

Abstract:

Abstract

Crossed and internalized upstairs trades are analysed in a dataset in which institutional investors can be identified. Earlier findings that upstairs trading is uninformed, taps into unexpressed liquidity, and does not affect market quality are revisited. The permanent price effect of crossings and internalized upstairs trades is significantly lower than that of limit order book trades due to the fact that the least informed institutional trades are routed upstairs. Crossed and internalized trades affect the depth and transaction costs in the limit order book and a greater reliance is placed on the upstairs market when liquidity is low and volatility is high.

Keywords: Crossing; G10; G15; G24; Internalization; Limit order book; Market quality; Upstairs

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1467-629X.2008.00282.x

Affiliations: Faculty of Economics and Business, University of Sydney, Sydney, 2006, Australia

Publication date: June 1, 2009

Related content

Tools

Favourites

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more