JOURNAL OF ACCOUNTING AND FINANCE
Exchange Entrances, Mergers and the Evolution of Trading of NASDAQ
Listed Securities 1993-2010
Author(s): Jared F. Egginton, Bonnie F. Van Ness, Robert A. Van Ness
Citation: Jared F. Egginton, Bonnie F. Van Ness, Robert A. Van Ness, (2012) "Exchange Entrances, Mergers and the Evolution of Trading of NASDAQ Listed Securities 1993-2010," Journal of Accounting and Finance, Vol. 12, Iss. 4, pp. 66 - 85
Article Type: Research paper
Publisher: North American Business Press
We examine the changes in reported trades on NASDAQ from 1993 through 2010. We find that while volume and the number of trades are increasing for NASDAQ-listed securities, the percentage of volume that executes on NASDAQ declines from almost 100% in the 1990’s to less than 40% in 2010. We examine the entrants of new exchanges on NASDAQ and the merger of NASDAQ and several exchanges. We do not find that either entrants of new trading venues or the merging of trading venues leads to a change in total volume of securities executed. We also document a large increase in the number of cancelled orders for NASDAQ-listed securities, and this is increasing.