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Encyclopedia of Finance pp 443–446Cite as

The 1997 NASDAQ trading rules

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Abstract

Several important trading rules were introduced in NASDAQ in 1997. The trading reforms have significantly reduced bid-ask spreads on NASDAQ. This decrease is due to a decrease in market-making costs and/or an increase in market competition for order flows. In addition, in the post-reform period, the spread difference between NASDAQ and the NYSE becomes insignificant with the effect of informed trading costs controlled.

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References

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Author information

Authors and Affiliations

  1. Indiana University Southeast, New Albany, USA

    Yan He

Authors
  1. Yan He
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Editor information

Editors and Affiliations

  1. Rutgers University, New Brunswick/Piscataway, USA

    Cheng-Few Lee

  2. San Francisco State University, San Francisco, USA

    Alice C. Lee

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© 2006 Springer Science+Business Media, Inc.

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He, Y. (2006). The 1997 NASDAQ trading rules. In: Lee, CF., Lee, A.C. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-26336-6_43

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  • DOI: https://doi.org/10.1007/978-0-387-26336-6_43

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-0-387-26284-0

  • Online ISBN: 978-0-387-26336-6

  • eBook Packages: Business and Economics

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