A Good Beginning Makes a Good Market: The Effect of Different Market Opening Structures on Market Quality
Joint Authors
Hinterleitner, Gernot
Leopold-Wildburger, Ulrike
Mestel, Roland
Palan, Stefan
Source
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-14, 14 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-08-13
Country of Publication
Egypt
No. of Pages
14
Main Subjects
Medicine
Information Technology and Computer Science
Abstract EN
This paper deals with the market structure at the opening of the trading day and its influence on subsequent trading.
We compare a single continuous double auction and two complement markets with different call auction designs as opening mechanisms in a unified experimental framework.
The call auctions differ with respect to their levels of transparency.
We find that a call auction not only improves market efficiency and liquidity at the beginning of the trading day when compared to the stand-alone continuous double auction, but also causes positive spillover effects on subsequent trading.
Concerning the design of the opening call auction, we find no significant differences between the transparent and nontransparent specification with respect to opening prices and liquidity.
In the course of subsequent continuous trading, however, market quality is slightly higher after a nontransparent call auction.
American Psychological Association (APA)
Hinterleitner, Gernot& Leopold-Wildburger, Ulrike& Mestel, Roland& Palan, Stefan. 2015. A Good Beginning Makes a Good Market: The Effect of Different Market Opening Structures on Market Quality. The Scientific World Journal،Vol. 2015, no. 2015, pp.1-14.
https://search.emarefa.net/detail/BIM-1078658
Modern Language Association (MLA)
Hinterleitner, Gernot…[et al.]. A Good Beginning Makes a Good Market: The Effect of Different Market Opening Structures on Market Quality. The Scientific World Journal No. 2015 (2015), pp.1-14.
https://search.emarefa.net/detail/BIM-1078658
American Medical Association (AMA)
Hinterleitner, Gernot& Leopold-Wildburger, Ulrike& Mestel, Roland& Palan, Stefan. A Good Beginning Makes a Good Market: The Effect of Different Market Opening Structures on Market Quality. The Scientific World Journal. 2015. Vol. 2015, no. 2015, pp.1-14.
https://search.emarefa.net/detail/BIM-1078658
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1078658