Impact assessment

Computer trading: impact of internalisation on the quality of displayed liquidity

Economic impact assessment on internalisation on the quality of liquidity provision.

• From: Government Office for Science
• Published: 31 August 2012

Documents

The impact of internalisation on the quality of displayed liquidity (EIA10)

Ref: BIS/12/1071

PDF, 463 KB, 16 pages

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Details

This economic impact assessment discusses the impact of internalisation on liquidity provision in the US and EU equity markets. It considers 4 potential regulatory measures on internalisation:

• ‘trade-at’ rule
• sub-penny pricing for retail liquidity providers
• minimum size requirement
• dark pool quote threshold

This impact assessment was commissioned as part of the Foresight project on the future of computer trading.

Published 31 August 2012