Finance Seminar with Ingrid Werner, The Ohio State University, Fisher College of Business
The Department of Finance is proud to announce the upcoming seminar with Ingrid Werner, The Ohio State University, Fisher College of Business
Ingrid Werner will present:
Trading Fees and Intermarket Competition
ABSTRACT: We study the 2013 changes in maker-taker pricing fees implemented by BATS on its two European venues, CXE and BXE. We find that the reduction of the rebate deteriorates market quality and market share for CXE; whereas the rebate removal and reduction of take fees in BXE improves market quality and market share. We derive a model of two competing limit order books, in which large (small) stocks, are characterized by investors with a higher (lower) propensity to supply liquidity and by greater (lower) trading activity. Our empirical results are consistent with our model predictions that traders in large stocks are more reactive to reductions in rebates while traders in small stocks are more reactive to reductions in take fees.
Location:
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs03
More information will follow.