The Curious Case of Changes in Trading Dynamics: When Firms Switch from NYSE to NASDAQ
55 Pages Posted: 1 Aug 2018
Date Written: April 2018
Voluntarily switching trading location from the New York Stock Exchange to the NASDAQ is a new phenomenon, with 53 companies making the switch since 2000. We examine the stated reasons for the move and investigate the consistency with the subsequent market dynamics, including effects on liquidity, trading activity, and visibility. We find the move to the NASDAQ increases trading costs, improves visibility, attracts more liquidity providers in the long term, explaining the subsequent increase in trading volume and supporting many of the management statements justifying the move. Our findings suggest multi-dimensional aspects may be important considerations in moves between exchanges.
Keywords: Trading Costs, Volume, Exchange Listing, NYSE, NASDAQ
JEL Classification: G10, G15, G18
Suggested Citation: Suggested Citation