We are currently experiencing intermittent issues impacting performance. We apologize for the inconvenience.
By Topic

Trade execution costs and disintermediated order crossing systems on the London Stock Exchange

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

1 Author(s)
Weber, B.W. ; Dept. of Inf. Syst., New York Univ., NY, USA

The growth of alternative trading systems that compete with established stock markets will have profound effects on many securities exchanges and their member firms. 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 operating on the London Stock Exchange's SEAQ market provide an intermediated “quote-driven” trading mechanism, but the approaching roll-out of several alternatives will provide investors with new opportunities to trade without market makers. A model of order arrival, information change, and trading in a competing dealer market based on SEAQ is used to examine the consequences of “disintermediated” trading systems. The results indicate low-cost trading systems reduce dealing margins and the role of intermediaries. While alternative trading system lessen the transactions costs borne by some traders, those requiring immediate execution and dealer intermediation may pay more in future marketplaces

Published in:

System Sciences, 1995. Proceedings of the Twenty-Eighth Hawaii International Conference on  (Volume:4 )

Date of Conference:

3-6 Jan 1995