Human vs. machine: The impact of information processing on trading in OTC markets

Travis Box and Ryan Davis

Finance Research Letters, 2025, vol. 72, issue C

Abstract: This paper investigates the differential impact of human versus machine SEC filing downloads on trading activity in the OTC market. Human downloads drive immediate, significant increases in trading volume, especially for filings requiring qualitative interpretation, whereas machine downloads produce delayed and muted effects, mainly impacting standardized filings. These findings underscore the essential role of human interpretation in market responses and highlight the distinct effects of access modes on trading dynamics as OTC markets adapt to technological and regulatory shifts.

Keywords: SEC filings; Over-the-counter (OTC) securities; Public information; Automated trading; Information asymmetry (search for similar items in EconPapers)
JEL-codes: C33 C55 G10 G12 G14 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324015459

DOI: 10.1016/j.frl.2024.106516

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