Crossing Networks: Competition and Design
KU Leuven - Faculty of Business and Economics (FBE); Centre for Economic Policy Research (CEPR); CentER, European Banking Center (EBC), TILEC, Tilburg University
Mark Van Achter
Rotterdam School of Management, Erasmus University
KU Leuven - University of Leuven
TILEC Discussion Paper 2006-015
In the past two decades, alternative trading systems started to compete with traditional exchanges. Our paper focuses on one such system: a Crossing Network (CN). First, we discuss the distinct institutional aspects a CN offers compared to traditional markets. Next, we present an overview of the theoretical and empirical literature analyzing their success in competing with traditional markets. Finally, we offer some prospects on the potential outcome of this competition, taking into account market design issues such as the optimal degree of transparency of CNs. We also provide a market practioner's view on the market design of CNs.
Number of Pages in PDF File: 21working papers series
Date posted: July 13, 2006
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