Competition of Retail Trading Venues − Online-brokerage and Security Markets in Germany

Dennis Kundisch () and Carsten Holtmann ()
Additional contact information
Dennis Kundisch: University of Augsburg
Carsten Holtmann: Research Unit Information Process Engineering (IPE)

Chapter 8 in Handbook on Information Technology in Finance, 2008, pp 171-192 from Springer

Abstract: Abstract German regional stock exchanges rival in the horizontal inter-exchange competition for order flow of investors. Particularly, they are trying to be an attractive option for private retail investors and differentiate against the competition. Differentiation often comes in terms of ‘price quality’ and the attempt to reduce implicit transaction costs for the investors. Therefore, many exchanges have begun to extend their established trading rules. With different labels and – in detail slightly differing – service attributes, e. g. best-execution guarantees have been introduced to most markets. These offerings have in common, that investor gets a guarantee that the price for a transaction will be at least as good as it would be at a predefined – often more liquid – reference market. For retail investors, it is not only the implicit transaction costs but also the explicit ones that are relevant for his orderrouting decision. These are the sum of provisions and fees that are charged by the service providers that participate in routing and matching an order as well as clearing a deal.

Keywords: Mutual Fund; Price Model; Service Component; Security Market; Market Maker (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:ihichp:978-3-540-49487-4_8

Ordering information: This item can be ordered from
http://www.springer.com/9783540494874

DOI: 10.1007/978-3-540-49487-4_8

Access Statistics for this chapter

More chapters in International Handbooks on Information Systems from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().