The proof of the pudding: the effects of increased trade transparency in the London Stock Exchange
The proof of the pudding: the effects of increased trade transparency in the London Stock Exchange
The trade publication rules of the London Stock Exchange were changed on 1 January, 1996, to increase transparency. This paper investigates whether these changes affected market behaviour by examining data on 60 firms from the FTSE 100, FTSE Mid 250 and the FTSE Small Cap indices before and after this rule change. This study finds there has been a major increase in transparency, with no detrimental effects on the quality of the market. In particular, neither the volume nor the traded bid-ask spread has been adversely affected.
transparency, London Stock Exchange, trade publication, volume, bid-ask spread
887-909
Board, John
a844b0e9-5866-4eac-a052-9590b00c1a43
Sutcliffe, Charles
1a8ec184-d880-492f-8714-7312c6884105
2000
Board, John
a844b0e9-5866-4eac-a052-9590b00c1a43
Sutcliffe, Charles
1a8ec184-d880-492f-8714-7312c6884105
Board, John and Sutcliffe, Charles
(2000)
The proof of the pudding: the effects of increased trade transparency in the London Stock Exchange.
Journal of Business Finance & Accounting, 27 (7-8), .
(doi:10.1111/1468-5957.00338).
Abstract
The trade publication rules of the London Stock Exchange were changed on 1 January, 1996, to increase transparency. This paper investigates whether these changes affected market behaviour by examining data on 60 firms from the FTSE 100, FTSE Mid 250 and the FTSE Small Cap indices before and after this rule change. This study finds there has been a major increase in transparency, with no detrimental effects on the quality of the market. In particular, neither the volume nor the traded bid-ask spread has been adversely affected.
This record has no associated files available for download.
More information
Published date: 2000
Keywords:
transparency, London Stock Exchange, trade publication, volume, bid-ask spread
Identifiers
Local EPrints ID: 35953
URI: http://eprints.soton.ac.uk/id/eprint/35953
ISSN: 0306-686X
PURE UUID: b0d9f8e6-f2e6-4d59-b128-9850f29b4a18
Catalogue record
Date deposited: 26 Jul 2006
Last modified: 15 Mar 2024 07:55
Export record
Altmetrics
Contributors
Author:
John Board
Author:
Charles Sutcliffe
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics