The electronic limit-order trading system have been sweeping the exchanges around the globe since last decade. This paper studies a case of the transition, which is a group of less-liquid stocks moving to SETS on the London Stock Exchange. The evidence reveals that the liquidity of those stocks substantially drops after the move.

Abstmct. l’he growth of alternative trading systems that compete with established stock markets will have profound fleets on many securities exchanges and their nltmlber jhs. New screen-based markets match investors ’ orders directly without the involvement of a broker or a dealer, saving intermediation costs such as the bid-ask spread and broker commission costs. Competing market makers operat...

We examine algorithmic trades (AT) and their role in the price discovery process in the 30 DAX stocks on the Deutsche Boerse in January 2008. AT liquidity demand represents 52% of volume and AT supplies liquidity on 50% of volume. AT act strategically by monitoring the market for liquidity and deviations of price from fundamental value. AT consume liquidity when it is cheap and supply liquidity...

In this research, we provided an answer to a very important trading question, what is the optimal number of technical tools in order achieve best results for both swing trade that uses daily bars and intraday minutes bars? We designed Machine Learning (ML) systems can four major cryptocurrencies: Bitcoin, Ethereum, BNB, Solana. found more indicators do not necessarily mean better performance. S...

Stock trading system to assist decision-making is an emerging research area and has great commercial potentials. Successful trading operations should occur near the reversal points of price trends. Traditional technical analysis, which usually appears as various trading rules, does aim to look for peaks and bottoms of trends and is widely used in stock market. Unfortunately, it is not convenien...

This paper provides evidence that intensified product market competition increases information asymmetry between corporate insiders and investors. I use volume and gains from insider trading as proxies for information asymmetry. I show that when a firm faces competitive threats insiders purchase and sell more stocks and their trading better predicts future stock returns and long-term profitabil...

This paper proposes that electronic marketplaces for Web 3.0 can be described through three metaphors: “marketplaces where people are”, “marketplaces that are alive and engaging”, and “market places where information is valuable and useful”. The paper presents the core technologies that enable the perceivable reality of electronic marketplaces. It describes a demonstrable prototype of a Web-bas...

Two alternative trading mechanisms for securities markets are compared using laboratory experimentation and computer simulation. One mechanism is the floor-based specialist auction in place in most U.S. stock exchanges today, and the other is an electronic alternative employing automatic order matching. We conclude that transition from the established floor-based exchanges to potentially superi...

T paper examines the contribution to price discovery by electronic and voice-based trading systems in the U.S. Treasury market. Evidence shows that the electronic trading system has more price discovery and that trading automation increases the speed of incorporating information into prices. However, human trading generates significant price discovery, though its volume is low. The relative con...

Being provided with a unique high-frequency dataset, we are able to show by means of an empirical analysis that computer-based traders, i.e. Algorithmic Trading (AT) engines, behave significantly different from human traders with regard to their order cancellation behaviour. Furthermore, given exactly this difference we point out that the application of well-established “traditional” liquidity ...