This chapter from the forthcoming Handbook on Law and Entrepreneurship (Gordon Smith, Christine Hurt & Brian Broughman eds.) sets out a template for the regulation of venture exchanges — securities markets specifically designed for trading smaller and younger firms. I argue for listing...

We examine the impact of a rule in the Canadian equities market that requires dark orders to offer price improvement over displayed orders. We show that this rule eliminated intermediation of retail orders in the dark and shifted retail orders onto the lit market with the lowest trading fee....