The Impact of Electronic Trading on Liquidity

Electronic trading in the US equity markets : friend or foe? an empirical analysis of new rules adopted under regulation national market system

“…Venkataraman and Waisburd (2005) also find that a number of electronic exchanges around the world have recently introduced specialists, or other dealers, to facilitate trading in their stocks. Hill and Frino (2001) However, they also find that the bid-ask spreads become wider (more costly) in response to higher price volatility under electronic trading, relative to floor trading. Goldstein and Kavajecz (2004) study the trading strategies of NYSE brokers by analyzing their choice of venue, order type, and timing during the turbulent October 1997 period.…”