Crossing Networks: Competition and Design

TILEC Discussion Paper 2006-015

21 Pages Posted: 13 Jul 2006

See all articles by Hans Degryse

Hans Degryse

KU Leuven, Department Accounting, Finance and Insurance; Centre for Economic Policy Research (CEPR)

Mark Van Achter

Erasmus University Rotterdam (EUR) - Finance

Gunther Wuyts

KU Leuven - University of Leuven

Date Written: June 2006

Abstract

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.

Suggested Citation

Degryse, Hans and Van Achter, Mark and Wuyts, Gunther, Crossing Networks: Competition and Design (June 2006). TILEC Discussion Paper 2006-015. Available at SSRN: https://ssrn.com/abstract=913690 or http://dx.doi.org/10.2139/ssrn.913690

Hans Degryse (Contact Author)

KU Leuven, Department Accounting, Finance and Insurance ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Mark Van Achter

Erasmus University Rotterdam (EUR) - Finance ( email )

Burgemeester Oudlaan 50
P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 40 82 953 (Phone)
+31 10 40 89 017 (Fax)

HOME PAGE: http://www.rsm.nl/mvanachter

Gunther Wuyts

KU Leuven - University of Leuven ( email )

KU Leuven - Faculty of Business and Economics
Naamsestraat 69
Leuven, Vlaams-Brabant 3000
Belgium
+3216326731 (Phone)

HOME PAGE: http://www.econ.kuleuven.be/gunther.wuyts

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