Free Site Registration

Professor Christie Calls for a Nickel Tick

Traders Magazine, October 2003

John A. Byrne

Professor William G. Christie, the academic whose work on Nasdaq price collusion inspired lawmakers in Washington to bring in the controversial order handling rules, says it's time to fix spreads again. But this time with a nickel increment. Almost ten years after Christie and his colleague, Professor Paul Shultz, demonstrated that market makers maintained quote increments of $0.25 in 70 of the 100 most active Nasdaq stocks - by avoiding odd-eighth quotes - Christie says penny pricing has gone too far.

Get access to this article and thousands more...

All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.

Already Registered?

Advertisement

Advertisement