We examine the impact of differing levels of pretrade transparency on the quotation behavior of Nasdaq market makers. We find that market makers are more likely to quote on odd ticks, and to actively narrow the spread, when they can do so anonymously by posting limit orders on Electronic...

We examine the impact of differing levels of pretrade transparency on the quotation behavior of Nasdaq market makers. We find that market makers are more likely to quote on odd ticks, and to actively narrow the spread, when they can do so anonymously by posting limit orders on Electronic...

We examine the impact of three Nasdaq rule changes on some aspects of market quality. In particular we investigate the quotation behavior of market makers following the reduction in tick size from eighths to sixteenths on June 2, 1997; the direct impact of including electronic communication network...