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Does Floor Trading Matter?

Although algorithmic trading now dominates financial markets, some exchanges continue to use human floor traders. On March 23, 2020 the NYSE suspended floor trading because of COVID-19. Using a difference-in-differences analysis around the closure of the floor, we find that floor traders are important contributors to market quality. The suspension of floor trading leads to higher spreads and larger pricing errors for treated stocks relative to control stocks. To explore the mechanism, we exploit two partial floor reopenings that have different characteristics. Our finding suggests that in-person human interaction facilitates the transfer of valuable information that algorithms lack.

Ketersediaan
Call NumberLocationAvailable
PSB lt.2 - Karya Akhir (Koleksi Majalah)1
Informasi Detail
Judul Seri
-
No. Panggil
-
Penerbit
USA : The American Finance Association.,
Deskripsi Fisik
ill, chart, table, grafik, 649 hal, 20 cm
Bahasa
English
ISBN/ISSN
1540-6261
Klasifikasi
NONE
Tipe Isi
text
Tipe Media
-
Tipe Pembawa
-
Edisi
Volume 80, Issue 1, February 2025, Pages 375-414
Subjek
Financial markets
Stocks
Market quality
New York Stock Exchange
Control Stocks
Info Detail Spesifik
The Journal of Finance
Pernyataan Tanggungjawab
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Tidak tersedia versi lain

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