For the execution of large equity orders, institutional investors often use the Volume Weighted Average Price (VWAP) as a benchmark to measure execution quality. To achieve this, they have the possibility to either cross their orders in a non-intermediated electronic system or to submit a VWAP...

The Markets in Financial Instruments Directive (MiFID) is the new regulatory framework for investment services in the European Economic Area (EEA) and has to be applied by investment firms and Regulated Markets in Europe from November 1st 2007. It is expected to trigger fundamental changes in...

Efficient Order-Channel Management, i.e. the process of information gathering, evaluation, decision and control regarding the setup of the overall trading infrastructure and the actual order routing implementation plays a crucial role for trading success as well as the competitiveness of...

Due to the demutualization of exchanges, the business case of operating an electronic financial market has become more important. Specifically, it is vital to design pricing incentives for the provision of order flow and thereby to assure market liquidity. The paper will introduce the Concept of...

Financial market manipulations represent a major threat to trust and market integrity in capital markets. Manipulations contribute to mispricing, market imperfections and an increase in transaction costs for market participants and in costs of capital for issuers. Manipulations are facilitated...

We analyze how market fragmentation affects market quality of SME and other less actively traded stocks. Compared to large stocks, they are less likely to be traded on multiple venues and show, if at all, low levels of fragmentation. Concerning the impact of fragmentation on market quality, we...

Brokerage houses historically have provided research and related services togeth-er with order execution without separate fees. This practice of research bundling through so-called soft commissions has triggered an intense and ongoing debate considering that research bundling leads to...

German Abstract: Aufgrund der schnell voranschreitenden Digitalisierung, die kontinuierlich verschiedene Unternehmensprozesse und -funktionen erfasst, und eines hohen Wettbewerbsdrucks entstehen in der Finanzindustrie neue und innovative Serviceangebote. Durch diese Angebote eröffnen sich auch...