Broker routing decisions in limit order markets

被引：6
作者：
Cimon, David A. [1 ]
机构：
[1] Wilfrid Laurier Univ, Lazaridis Sch Business & Econ, 75 Univ Ave West, Waterloo, ON, Canada
来源：
JOURNAL OF FINANCIAL MARKETS | 2021年 / 54卷
关键词：
Brokers; Market microstructure; Market quality; Market fragmentation; Make; take fees; PRICE;
D O I：
10.1016/j.finmar.2020.100602
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
I model investors who are only able to access equity markets through a broker. These brokers have an incentive to route based on the fees charged by exchanges, rather than on execution quality for their clients. This conflict of interest reduces investor utility, as they must pay higher commissions to have orders sent to exchanges with the best market quality. I show that regulators may be able to improve investor utility by allowing investors to self-direct order flow. (c) 2020 Elsevier B.V. All rights reserved.
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页数：18
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