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Large trades on the Tunisian Stock Exchange: Downstairs versus upstairs stock markets

Author

Listed:
  • Monia Antar Limem

    (Management and Economic Sciences University of Jendouba)

  • Faouzi Jilani

Abstract

This study examines the price impact differences between large trades routed to the central market and blocks traded on the upstairs market on the Tunisian Stock Exchange. The results show that large transactions affect stock prices whether they are routed upstairs or downstairs. In addition, these price impacts are quite different depending on where the execution takes place, especially around large sales. The results of empirical investigations also show that, when upstairs market is governed by too restrictive rules and when brokers do not have the reflex or avoid to trade upstairs, block market does not necessarily improve cost execution.

Suggested Citation

  • Monia Antar Limem & Faouzi Jilani, 2013. "Large trades on the Tunisian Stock Exchange: Downstairs versus upstairs stock markets," Journal of Asset Management, Palgrave Macmillan, vol. 14(6), pages 410-422, December.
    • Handle: RePEc:pal:assmgt:v:14:y:2013:i:6:d:10.1057_jam.2014.1
    DOI: 10.1057/jam.2014.1
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    References listed on IDEAS

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