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Trading Structure, Liquidity Rebates and Market Quality

Fany Declerck et Sophie Moinas

Résumé

We use a natural experiment, consisting of asymmetric changes in the fees charged by Euronext Amsterdam to the submission of market and limit orders in 2004, to improve our understanding of the formation of liquidity in limit order books. Counter-intuitively, changes in order submission fees are not found to impact trading volumes, although they are economically substantial. We however show that order fees impact the liquidity of the market. This result suggests that limit order books have a flavor of two-sided markets.

Référence

Fany Declerck et Sophie Moinas, Trading Structure, Liquidity Rebates and Market Quality, mars 2009, révision mai 2010.

Publié dans

mars 2009, révision mai 2010