Why Nasdaq market makers avoid odd-eighth quotes

Journal of Financial Economics

Volumn 41, Issue 3, 1996, Pages 465-474

  Godek, Paul E ^a  

^a Economists Incorporated   (United States)

Author keywords

Collusion; Nasdaq market markers; Preference trading; Quotes; Spreads

Indexed keywords

EID: 0030191752     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/0304-405X(95)00863-A     Document Type: Article

References (11)

1. Affleck-Graves, John, Shantaram P. Hedge, and Robert E. Miller, 1994, Trading mechanisms and the components of the bid-ask spread, Journal of Finance 49, 1471-1488.
2. Amemiya, Takeshi, 1981, Qualitative response models: A survey, Journal of Economic Literature 19, 1483-1536.
3. Christie, William G. and Paul H. Schultz, 1994, Why do Nasdaq market makers avoid odd-eighth quotes?, Journal of Finance 49, 1813-1840.
4. Christie, William G., Jeffrey H. Harris, and Paul H. Schultz, 1994, Why did Nasdaq market makers stop avoiding odd-eighth quotes?, Journal of Finance 49, 1841-1860.
5. Grossman, Sanford J., Merton H. Miller, Daniel R. Fischel, Kenneth R. Cone, and David J. Ross, 1995, Clustering and competition in asset markets, A Lexecon report.
6. Harris, Lawrence, 1991, Stock price clustering and discreteness, Review of Financial Studies 4, 389-415.
7. Huang, Roger D. and Hans R. Stoll, 1992, The design of trading systems: Lessons from abroad, Financial Analysts Journal 48, 49-54.
8. Huang, Roger D. and Hans R. Stoll, 1996, Dealer versus auction markets: A paired comparison of execution costs on Nasdaq and the NYSE, Journal of Financial Economics, this issue.
9. National Association of Securities Dealers, 1993, 1993 Nasdaq fact book and company directory (NASD, Washington, DC).
10. Schwartz, Robert A., 1993, Reshaping the equity markets: A guide for the 1990s (Irwin, Homewood, IL).
11. Sproul, Michael F., 1993, Antitrust and prices, Journal of Political Economy 101, 741-754.