The 1997 NASDAQ Trading Rules

Yan He ()
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Yan He: Indiana University Southeast

Chapter 18 in Encyclopedia of Finance, 2022, pp 723-727 from Springer

Abstract: Abstract Several important trading rules were introduced in NASDAQ in 1997. The trading reforms have significantly reduced bid–ask spreads on NASDAQ. This decrease is due to a decrease in market-making costs and/or an increase in market competition for order flows. In addition, in the post-reform period, the spread difference between NASDAQ and the NYSE becomes insignificant with the effect of informed trading costs controlled.

Keywords: Bid–ask spread; Informed trading costs; NASDAQ; NYSE; Reforms; SEC; SEC order handling rules; The actual size rule; The sixteenths minimum increment rule; Trading rules (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/978-3-030-91231-4_18

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