Download This PaperMarket Makers and Liquidity
Market Microstructure in Emerging and Developed Markets, H. Kent Baker & Halil Kiymaz, eds., 2013
17 Pages Posted: 14 Apr 2013 Last revised: 8 Nov 2013
Date Written: 2013
Abstract
Current trading is characterized by various market structures. This chapter examines market structures predominant in equities and fixed-income markets and compares and contrasts them. It also reviews the academic literature about the implications of market structure design. Market structure influences the availability and price of securities and can influence market participants’ choice of trading in many aspects — the venue on which participants trade, how they parcel the order to achieve their objectives, and the composition of what fees they pay. Additionally, the chapter shows how regulation and technology, as well as trader preferences, have influenced the development of securities markets.
Keywords: market structure, trading, securities markets
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