| Record ID | marc_loc_updates/v40.i08.records.utf8:21175097:2349 |
| Source | Library of Congress |
| Download Link | /show-records/marc_loc_updates/v40.i08.records.utf8:21175097:2349?format=raw |
LEADER: 02349nam a22002897a 4500
001 2011657541
003 DLC
005 20120214110244.0
007 cr |||||||||||
008 120214s2011 mau sb 000 0 eng
010 $a 2011657541
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aPagnotta, Emiliano.
245 10 $aCompeting on speed$h[electronic resource] /$cEmiliano Pagnotta, Thomas Philippon.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2011.
490 1 $aNBER working paper series ;$vworking paper 17652
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 2/14/2012.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"Two forces have reshaped global securities markets in the last decade: Exchanges operate at much faster speeds and the trading landscape has become more fragmented. In order to analyze the positive and normative implications of these evolutions, we study a framework that captures (i) exchanges' incentives to invest in faster trading technologies and (ii) investors' trading and participation decisions. Our model predicts that regulation that protect prices will lead to fragmentation and faster trading speed. Asset prices decrease when there is intermediation competition and are further depressed by price protection. Endogenizing speed can also change the slope of asset demand curves. On normative side, we find that for a given number of exchanges, faster trading is in general socially desirable. Similarly, for a given trading speed, competition among exchange increases participation and welfare. However, when speed is endogenous, competition between exchanges is not necessarily desirable. In particular, speed can be inefficiently high. Our model sheds light on important features of the experience of European and U.S. markets since the implementation of Reg. NMS, and provides some guidance for optimal regulations"--National Bureau of Economic Research web site.
700 1 $aPhilippon, Thomas.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 17652.
856 40 $uhttp://www.nber.org/papers/w17652