SEC Study Claims Nasdaq Too Pricey
Traders Magazine, January 2001
In a conclusion that was challenged, a recent Securities and Exchange Commission study claims that spreads are "significantly" larger on Nasdaq than the NYSE on retail trades of under 500 shares.
"We do have several concerns about the report methodology that we have communicated to the SEC," said Richard Ketchum, president of Nasdaq. The SEC report finds that small retail trades have effective spreads that "are from 5.7 to eleven cents per share wider than those for matched NYSE stocks."
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