Trading System and Market Integration

Posted: 21 Sep 1998

See all articles by Olaf Korn

Olaf Korn

University of Goettingen (Göttingen)

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR)

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Abstract

In this paper we investigate empirically the relative advantages of floor and screen trading systems. We judge the systems by their ability in providing a high degree of market integration. The main result is that a closer integration of underlying and derivative markets occurs when both instruments are screen traded, but the difference is significant only for short return intervals. In active trading periods the superiority of screen systems is even more pronounced.

JEL Classification: G15, G20

Suggested Citation

Korn, Olaf and Kempf, Alexander, Trading System and Market Integration. Available at SSRN: https://ssrn.com/abstract=127628

Olaf Korn

University of Goettingen (Göttingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany
++49 551 39 7265 (Phone)
++49 551 39 7665 (Fax)

Alexander Kempf (Contact Author)

University of Cologne - Department of Finance & Centre for Financial Research (CFR) ( email )

Cologne, 50923
Germany
+49 221 470 2714 (Phone)
+49 221 470 3992 (Fax)

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