A critical review to analyse the effect of online and traditional trading on effective market performance on the Nasdaq

Haroun Alryalat; Yogesh Kumar Dwivedi; Jasna Kuljis; Ray J. Paul

doi:10.1504/IJEF.2006.010313

A critical review to analyse the effect of online and traditional trading on effective market performance on the Nasdaq

Haroun Alryalat^*
, Yogesh Kumar Dwivedi
, Jasna Kuljis
, Ray J. Paul

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

The purpose of this paper is to present a critical analysis on the competition between online (ECN) and traditional (Market Maker (MM)) trading on the Nasdaq stock exchange. Online stock trading mechanisms at the exchanges are often a hybrid of dealer and auction markets. Different aspects of trading execution, which is the most commonly used market centre at present, are analysed. This leads to a discussion on: (1) the bath that executes order is organised and (2) its impact on the effective market performance, trading cost and investor behaviour.

Original language	English
Pages (from-to)	151-170
Number of pages	20
Journal	International Journal of Electronic Finance
Volume	1
Issue number	2
DOIs	https://doi.org/10.1504/IJEF.2006.010313
State	Published - 2006
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2006 Inderscience Enterprises Ltd.

Keywords

Critical review
Market performance
Nasdaq
Online
Trading
Traditional

ASJC Scopus subject areas

Finance
Computer Science Applications
Computer Networks and Communications
Management of Technology and Innovation

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10.1504/IJEF.2006.010313

Cite this

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title = "A critical review to analyse the effect of online and traditional trading on effective market performance on the Nasdaq",

abstract = "The purpose of this paper is to present a critical analysis on the competition between online (ECN) and traditional (Market Maker (MM)) trading on the Nasdaq stock exchange. Online stock trading mechanisms at the exchanges are often a hybrid of dealer and auction markets. Different aspects of trading execution, which is the most commonly used market centre at present, are analysed. This leads to a discussion on: (1) the bath that executes order is organised and (2) its impact on the effective market performance, trading cost and investor behaviour.",

keywords = "Critical review, Market performance, Nasdaq, Online, Trading, Traditional",

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doi = "10.1504/IJEF.2006.010313",

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AU - Paul, Ray J.

PY - 2006

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AB - The purpose of this paper is to present a critical analysis on the competition between online (ECN) and traditional (Market Maker (MM)) trading on the Nasdaq stock exchange. Online stock trading mechanisms at the exchanges are often a hybrid of dealer and auction markets. Different aspects of trading execution, which is the most commonly used market centre at present, are analysed. This leads to a discussion on: (1) the bath that executes order is organised and (2) its impact on the effective market performance, trading cost and investor behaviour.

KW - Critical review

KW - Market performance

KW - Nasdaq

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KW - Trading

KW - Traditional

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ER -

A critical review to analyse the effect of online and traditional trading on effective market performance on the Nasdaq

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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Cite this