Abstract

http://ssrn.com/abstract=2149302
 
 

References (25)



 


 



Make and Take Fees in the U.S. Equity Market


Laura Cardella


Texas Tech University

Jia Hao


University of Michigan at Ann Arbor - Ross School of Business

Ivalina Kalcheva


University of California, Riverside (UCR) - Department of Finance and Management Science

April 1, 2015


Abstract:     
We study the effect of liquidity-based trading fees charged by the U.S. stock exchanges, on market outcomes for the period 2008-2010. Our exchange-level analysis reveals that an exchange's trading volume is decreasing in its net fee, relative to the net fee of other exchanges. Further, an increase in the take fee decreases trading volume relatively more than an increase in the make fee. At the exchange level, these changes in trading volume are not accompanied by changes in quoted or net-of-fees spreads.

Number of Pages in PDF File: 54

Keywords: maker-taker, taker-maker, fees, rebates, access fees, liquidity rebates, spread, volume

JEL Classification: G1, G2


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Date posted: September 20, 2012 ; Last revised: April 2, 2015

Suggested Citation

Cardella, Laura and Hao, Jia and Kalcheva, Ivalina, Make and Take Fees in the U.S. Equity Market (April 1, 2015). Available at SSRN: http://ssrn.com/abstract=2149302 or http://dx.doi.org/10.2139/ssrn.2149302

Contact Information

Laura Cardella
Texas Tech University ( email )
Lubbock, TX 79409
United States
Jia Hao
University of Michigan at Ann Arbor - Ross School of Business ( email )
701 Tappan Street
Ann Arbor, MI MI 48109
United States
734-647-1690 (Phone)
Ivalina Kalcheva (Contact Author)
University of California, Riverside (UCR) - Department of Finance and Management Science ( email )
900 University Avenue
Riverside, CA 92521
United States
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