The Reporting of Island Trades on the Cincinnati Stock Exchange

10 Pages Posted: 22 Feb 2005

See all articles by Vanthuan Nguyen

Vanthuan Nguyen

Morgan State University

Bonnie F. Van Ness

University of Mississippi - Department of Finance

Robert A. Van Ness

University of Mississippi - Department of Finance

Abstract

Island is the largest electronic communications network in the US. On March 18th 2002, it began reporting trades to the Cincinnati Stock Exchange (CSE) to reduce costs. We use the information generated following this trade reporting change to analyze differences in trading characteristics and trading costs between Island and NASDAQ. The results indicate significantly lower effective spreads, percentage effective spreads, and traded spreads for Island trades. There is more trade price clustering on nickels, dimes, and quarters for NASDAQ trades.

JEL Classification: G10, G14

Suggested Citation

Nguyen, Vanthuan and Van Ness, Bonnie F. and Van Ness, Robert A., The Reporting of Island Trades on the Cincinnati Stock Exchange. Available at SSRN: https://ssrn.com/abstract=670388

Vanthuan Nguyen

Morgan State University ( email )

School of Business and Management
1700 East Cold Spring Lane
Baltimore, MD 21251
United States

Bonnie F. Van Ness (Contact Author)

University of Mississippi - Department of Finance ( email )

Oxford, MS 38677
United States
662-915-6749 (Phone)
662-915-7968 (Fax)

Robert A. Van Ness

University of Mississippi - Department of Finance ( email )

Oxford, MS 38677
United States

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