Trading system upgrades and short-sale bans: Uncoupling the effects of technology and regulation

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dc.contributor.author Chakrabarty, Bidisha
dc.contributor.author Moulton, Pamela C.
dc.contributor.author Pascual, Roberto
dc.date.accessioned 2020-04-21T07:22:44Z
dc.identifier.uri http://hdl.handle.net/11201/152063
dc.description.abstract [eng] We examine the market quality effects of technology upgrades juxtaposed with short-sale bans. Between 2011 and 2013, the Spanish Stock Exchange introduced a smart trading platform (SIBE-Smart) and colocation to facilitate high-speed trading, and they also imposed two short-sale bans. We find that the SIBE-Smart introduction, which occurs between the two short-sale bans, leads to reduced market quality. The introduction of colocation, which occurs during the second short-sale ban, improves market liquidity although it does not attract additional high-speed trading. Our results highlight how the effects of latency-reducing infrastructure improvements depend on, and differ across, different regulatory regimes.
dc.format application/pdf
dc.relation.isformatof Versió postprint del document publicat a: https://doi.org/10.1016/j.jempfin.2017.05.004
dc.relation.ispartof Journal Of Empirical Finance, 2017, vol. 43, p. 74-90
dc.subject.classification 33 - Economia
dc.subject.other 33 - Economics. Economic science
dc.title Trading system upgrades and short-sale bans: Uncoupling the effects of technology and regulation
dc.type info:eu-repo/semantics/article
dc.type info:eu-repo/semantics/acceptedVersion
dc.date.updated 2020-04-21T07:22:44Z
dc.date.embargoEndDate info:eu-repo/date/embargoEnd/2026-12-31
dc.embargo 2026-12-31
dc.rights.accessRights info:eu-repo/semantics/embargoedAccess
dc.identifier.doi https://doi.org/10.1016/j.jempfin.2017.05.004


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