(As Figure 1 indicates, the marginally significant difference between the mid-period MREs suggests that, on the contrary, the nontransparent market is more efficient (average MRE: 2.29%) than the transparent market (average MRE: 3.09%).) A closer look at the preopening order flow allows us to investigate if and under which circumstances the market quality in the transparent call auction differs from that in the nontransparent setting.
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A Good Beginning Makes a Good Market: The Effect of Different Market Opening Structures on Market Quality.
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