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The Proof of the Pudding: The Effects of Increased Trade Transparency in the London Stock Exchange

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Author Info
John Board (London School of Economics and Political Science, UK,)
Charles Sutcliffe

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Abstract

The trade publication rules of the London Stock Exchange were changed on 1 January, 1996, to increase transparency. This paper investigates whether these changes affected market behaviour by examining data on 60 firms from the FTSE 100, FTSE Mid 250 and the FTSE Small Cap indices before and after this rule change. This study finds there has been a major increase in transparency, with no detrimental effects on the quality of the market. In particular, neither the volume nor the traded bid-ask spread has been adversely affected. Copyright Blackwell Publishers Ltd 2000.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1468-5957.00338
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Business Finance & Accounting.

Volume (Year): 27 (2000-09)
Issue (Month): 7&8 ()
Pages: 887-909
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Handle: RePEc:bla:jbfnac:v:27:y:2000-09:i:7&8:p:887-909

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This page was last updated on 2009-12-19.


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