This paper examines price clustering on the Tokyo Stock Exchange. Regardless of tick and lot size, prices ending in zero and five are the most popular. The TSE has no market makers or direct negotiation between traders; therefore, clustering is not explained by collusion or negotiation. Our...

We test whether an increase either in informed (hypothesis 1) or in large liquidity trades (hypothesis 2) leads to greater correlation of trading volume across markets. We confirm that both trading volume and positive returns of target companies are abnormally high prior to merger announcements....