TY  - UNPD
A1  - Gomber, Peter
A1  - Sagade, Satchit
A1  - Theissen, Erik
A1  - Weber, Moritz Christian
A1  - Westheide, Christian
T1  - Competition/fragmentation in equities markets: a literature survey : [version november 2013]
T2  - SAFE working paper series ; No. 35
N2  - Advances in technology and several regulatory initiatives have led to the emergence of a competitive but fragmented equity trading landscape in the US and Europe. While these changes have brought about several benefits like reduced transaction costs, regulators and market participants have also raised concerns about the potential adverse effects associated with increased execution complexity and the impact on market quality of new types of venues like dark pools. In this article we review the theoretical and empirical literature examining the economic arguments and motivations underlying market fragmentation, as well as the resulting implications for investors' welfare. We start with the literature that views exchanges as natural monopolies due to presence of network externalities, and then examine studies which challenge this view by focusing on trader heterogeneity and other aspects of the microstructure of equity markets.
T3  - SAFE working paper - 35 
KW  - Market Structure
KW  - Competition
KW  - Fragmentation
KW  - Liquidity
KW  - Market Quality
Y1  - 2013
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/32479
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-324797
UR  - http://ssrn.com/abstract=2362216
IS  - version november 2013
PB  - SAFE
CY  - Frankfurt am Main
ER  -