Flash Orders and Tipping Insider Information: A Comment

Authors

  • Viktoria Dalko Hult International Business School and Harvard University
  • Michael H. Wang Research Institute of Comprehensive Economics

DOI:

https://doi.org/10.33423/jabe.v20i7.134

Keywords:

Business and Economics, Financial Market, Trading, Equity Market, Business, Economic

Abstract

This commentary is a reflection on Skjeltorp, Sojli, and Tham’s (2016) article titled “Flashes of Trading Intent at NASDAQ” in Journal of Financial and Quantitative Analysis, volume 51, pages 165–196. The commentary raises questions to four arguments made by the authors regarding the flash-order functionality. Is it beneficial to all the stocks listed on NASDAQ? Does it increase transparency for the entire market? Does it improve competition among market participants? Is it the same as sunshine trading? By looking into the details of related references and providing our own analysis, we cannot agree with the authors about flash orders’ role in promoting liquidity, transparency, competition or its similarity to sunshine trading.

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Published

2018-11-01

How to Cite

Dalko, V., & Wang, M. H. (2018). Flash Orders and Tipping Insider Information: A Comment. Journal of Applied Business and Economics, 20(7). https://doi.org/10.33423/jabe.v20i7.134

Issue

Vol. 20 No. 7 (2018)

Section

Articles

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