Title: A Critical Review to Analyze Affect
of Online and Traditional Trading on Effective Market Performance on the
Nasdaq
Abstract: The purpose of this paper is to present
a critical analysis on the competition between online (ECN) and traditional
(market maker) trading on the Nasdaq stock exchange. Online stock trading
mechanisms at exchanges are often hybrid of dealer and auction markets. Different
aspects of trading execution, which is the most commonly used market center
at present, are analyzed. This leads to a discussion on: (a) the way that
executes order is organized, and (b) it’s impact on effective market performance,
trading cost and investor behaviour.
Author:
Haroun Alryalat, Yogesh
K. Dwivedi, Jasna Kuljis, and Ray J. Paul