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Speed segmentation on exchanges : competition for slow flow / by Lisa Anderson ... [et al.].FB3-5/2018-3E-PDF

“In 2015, TSX Alpha, a Canadian stock exchange, implemented a speed bump for marketable orders and an inverted fee structure as part of a redesign. We find no evidence that this redesign impacted market-wide measures of trading costs or contributed appreciably to segmenting retail order flow away from other Canadian venues with a maker-taker fee structure. This suggests that Alpha attracts already-segmented flow from venues with fee structures other than maker-taker. Some heavy users of Alpha trade off improvements in fill rates and execution size against mildly larger effective spreads and price impacts. These heavy users also utilize larger market orders and fewer spray orders"--Abstract, p. ii.

Permanent link to this Catalogue record:
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Publication information
Department/Agency
  • Bank of Canada.
TitleSpeed segmentation on exchanges : competition for slow flow / by Lisa Anderson ... [et al.].
Series title
  • Bank of Canada staff working paper, 1701-9397 ; 2018-3
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "January 2018."
  • Includes bibliographical references (p. 18-19).
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada, 2018.
Author / Contributor
  • Anderson, Lisa.
Descriptionii, 39 p. : col. charts.
Catalogue number
  • FB3-5/2018-3E-PDF
Subject terms
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