Journal of Finance Vol. 54 No. 3 1999

Merging Markets

Tom Arnold¹; Philip Hersch²; J. Harold Mulherin³; Jeffry M. Netter⁴

¹ Indiana University · ² Wichita State University · ³ Penn State University · ⁴ University of Georgia

Abstract

We study the causes and effects of the competition for order flow by U.S. regional stock exchanges. We trace the origins of competition for order flow to a change in the role of regional exchanges from being venues for listing local securities to being more direct competitors for the order flow of NYSE listings. We study the way regionals competed for order flow, concentrating on a series of stock‐exchange mergers that occurred in the midst of this transition of the regional exchanges. The merging exchanges attracted market share and experienced narrower bid‐ask spreads.

DOI

10.1111/0022-1082.00137

Volume

54

Issue

3

Pages

1083-1107

Language

en

Sources

crossref openalex

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓