Registered trader participation during the Toronto Stock Exchange’s pre-opening session∗
نویسنده
چکیده
This paper documents order submission strategies during the Toronto Stock Exchange’s pre-opening session. I find that the registered trader (RT) actively participates in the market opening despite not being able to set the opening price directly and not having an apparent informational advantage. I find that RT opening trades are profitable, are able to moderate overnight price changes, and may be motivated, in part, by inventory adjustment concerns. I focus on interlisted stocks that simultaneously open for trading under two different mechanisms and show how the comparative levels of pre-trade market transparency of each exchange impacts RT profits and participation. JEL Classification: G10
منابع مشابه
found in Exhibit J to Topaz Exchange’s Form 1 application.
1 For the purposes of this request for comment, and as noted in Part III below, the term ‘‘retail customer’’ has the same meaning as in Section 913 of the Dodd–Frank Wall Street Reform and Consumer Protection Act. Public Law 111–203, 124 Stat. 1376 (2010). Specifically, it means ‘‘a natural person, or the legal representative of such natural person, who (A) receives personalized investment advi...
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