Stock exchange alliances, access fees and competition
Shy, Oz; Tarkka, Juha (09.10.2001)
Numero
22/2001Julkaisija
Suomen Pankki
2001
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-20140807608Tiivistelmä
This paper investigates the market consequences of alliance formation among stock exchanges.These alliances enable brokers to match investors internationally at their local market, thereby eliminating the need for brokers to maintain memberships in foreign stock exchanges.We sort out the conditions under which alliance formation increases profits for stock exchanges and brokers, and how changes in fee structures affect investors' participation rates and welfare.Finally, we examine several methods for implementing access fees and their welfare implications.Key words: stock exchange alliances, access fees, competition among stock exchanges