This paper examines the impact of reducing the tick size on market-making behavior on The Toronto Stock Exchange. The results indicate a significant decrease in the percentage of trades of fewer than 10,000 shares involving the upstairs traders and a significant increase in the percentage of...

This article provides empirical evidence on how market making is affected by the existence of a crowd in a floor trading system. In particular, we test the extent to which traders imitate each others' actions. Our tests are based on data from the Toronto Stock Exchange which closed its trading...