Bank of Japan Working Paper 02-E-2

RESEARCH - The Bank of Japan's Financial Markets Department has produced research on 'Market Microstructure and Spread Pattern in the JASDAQ Market'.

Abstract

Firms listed on JASDAQ can select either the order-driven (hereafter OD) system, where formal market makers are not involved, or the market-maker (hereafter MM) system for the trading of stocks. How differences in trading systems affect pricing and liquidity is a key issue in the study of market microstructure. This paper examines

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