International Cross-Listing and Order Flow Migration: Evidence from an Emerging Market

Posted: 13 Feb 1997

See all articles by Ian Domowitz

Ian Domowitz

ITG, Inc.; National Bureau of Economic Research (NBER)

Jack D. Glen

International Finance Corporation (IFC)

Ananth Madhavan

BlackRock, Inc.

Date Written: July 1996


Policy makers in emerging markets are increasingly concerned about the consequences for the domestic equity market when a company lists its stock abroad. We show that the effects of cross-listing depends on market transparency, i.e., the quality of inter-market information linkages. We investigate these issues with unique data from the Mexican equity market. The impact of cross-listing is complex, balancing the costs of order flow migration against the benefits of increased inter-market competition. These effects are exacerbated by equity investment barriers that induce segmentation of the domestic equity market. Consequently, the benefits and costs of cross-listing are not evenly spread over all classes of shareholders.

JEL Classification: F02, N26

Suggested Citation

Domowitz, Ian H. and Glen, Jack Dean and Madhavan, Ananth, International Cross-Listing and Order Flow Migration: Evidence from an Emerging Market (July 1996). Available at SSRN:

Ian H. Domowitz

ITG, Inc. ( email )

380 Madison Avenue, 4th Floor
Electronic Market Initiatives
New York, NY 10017
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jack Dean Glen

International Finance Corporation (IFC) ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States
202-473-8641 (Phone)

Ananth Madhavan (Contact Author)

BlackRock, Inc. ( email )

400 Howard Street
San Francisco, CA 94105
United States

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