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This paper studies the market quality of an internalization system which is designed as part of an open limit order book (the Xetra system operated by Deutsche Börse AG). The internalization sys-tem (Xetra BEST) guarantees a price improvement over the inside spread in the Xetra order book. We...
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capitalized stocks, and find empirical support for one of the main hypothesis put forth by the theory of limit order book markets …
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