Registered trader participation during the Toronto Stock Exchange's pre-opening session

Arbeitspapier

This paper documents order submission strategies during the Toronto Stock Exchange's pre-opening session. I find that the registered trader (RT) actively participates in the market opening despite not being able to set the opening price directly and not having an apparent informational advantage. I find that RT opening trades are profitable, are able to moderate overnight price changes, and may be motivated, in part, by inventory adjustment concerns. I focus on interlisted stocks that simultaneously open for trading under two different mechanisms and show how the comparative levels of pre-trade market transparency of each exchange impacts RT profits and participation.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Queen's Economics Department Working Paper ; No. 997

Classification and Topics

• Classification: Wirtschaft ; General Financial Markets: General (includes Measurement and Data)
• Subject: Registered trader ; market transparency ; interlisted securities ; price discovery

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Davies, Ryan
• Event: Veröffentlichung
• (who): Queen's University, Department of Economics
• (where): Kingston (Ontario)
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/189286