Competition between Exchanges - a Research Agenda

Résumé

This paper describes open research questions related to the competition and market structure of financial exchanges and argues that only a combination of industrial organization and finance can satisfactorily attack these questions. Two examples are discussed to illustrate how the combination of these two approaches can significantly enrich the analysis: the “network externality puzzle”, which refers to the question of why trading for the same security is often split across trading venues, and the impact of the multi-sided character of financial exchanges on pricing and profitability.

Référence

Estelle Cantillon et Pai-Ling Yin, « Competition between Exchanges - a Research Agenda », International Journal of Industrial Organization, vol. 29, n° 3, mai 2011, p. 329–336.