Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Competition in the exchange industry: An event study of the Nordic equity trading market
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.).
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This paper explores how the five largest trading venues in the Nordic region compete after theimplementation of MiFID in November 2007. I investigate: (1) if NASDAQ OMX’s market sharehas increased post the introduction of major changes to its market structure, and (2) how anexchange operator can attract equity share order flow in the near future. By applying event studiesto NASDAQ OMX’s market share over time, I find that introducing a faster trading system andadmitting a high frequency trading firm as a member both have a negative impact on NASDAQOMX’s market share. The reductions in market share can be explained by high frequency tradingfirms’ trading behaviour. Introducing central counterparty clearing has a positive effect onNASDAQ OMX’s market share, which highlights market participants’ appreciation of a securetrading environment, and confirms that it is not only posting the best bid and ask quotes thatattracts order flow to an exchange. It can be concluded that NASDAQ OMX in the future needs toaddress an important trade-off between total turnover and market share, as the two are not alwayspositively correlated.

Place, publisher, year, edition, pages
2013. , 40 p.
Series
Examensarbete INDEK, 2013:04
Keyword [en]
MiFID, Equity trading, Competition, Event study, NASDAQ OMX
National Category
Business Administration Mathematical Analysis
Identifiers
URN: urn:nbn:se:kth:diva-133302OAI: oai:DiVA.org:kth-133302DiVA: diva2:660390
External cooperation
NASDAQ OMX Stockholm AB
Subject / course
Finance
Educational program
Master of Science in Engineering - Industrial Engineering and Management
Presentation
2013-01-11, Sing-Sing, Lindstedtsvägen 30, Stockholm, 12:00 (English)
Supervisors
Examiners
Available from: 2013-11-07 Created: 2013-10-29 Last updated: 2013-11-07Bibliographically approved

Open Access in DiVA

Competition in the exchange industry(2033 kB)312 downloads
File information
File name FULLTEXT01.pdfFile size 2033 kBChecksum SHA-512
089bb88b6eee2d799f220df81e5656022c3b9651001588fe61bb44aafa20dc853e4008212cdf3cc2e7c709638fa5cba59e231caae8258f9880c95c8981dde930
Type fulltextMimetype application/pdf

By organisation
Industrial Economics and Management (Dept.)
Business AdministrationMathematical Analysis

Search outside of DiVA

GoogleGoogle Scholar
Total: 312 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 347 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf