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Stock exchange alliances, access fees and competition

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  • Shy, Oz
  • Tarkka, Juha

Abstract

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.

Suggested Citation

  • Shy, Oz & Tarkka, Juha, 2001. "Stock exchange alliances, access fees and competition," Bank of Finland Research Discussion Papers 22/2001, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp2001_022
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    File URL: https://www.econstor.eu/bitstream/10419/211900/1/bof-rdp2001-022.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kemppainen, Kari, 2003. "Competition and regulation in European retail payment systems," Bank of Finland Research Discussion Papers 16/2003, Bank of Finland.
    2. Hasan, Iftekhar & Schmiedel, Heiko, 2003. "Do networks in the stock exchange industry pay off? European evidence," Bank of Finland Research Discussion Papers 2/2003, Bank of Finland.

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