Commentary

Richard Repetto
Traders Magazine Online News

Why Do Exchanges Own Multiple Licenses? It's Not Hard To See, Look at the SEC

In this recent research note, Sandler O'Neill + Partners, L.P. Principal Richard Repetto examines why the public exchange operators hold multiple licenses and that rationale behind this phenomenon.

Traders Poll

As Bitcoin turns 10 year old this month, why are you not trading it or other crypto currencies?





Free Site Registration

February 1, 2005

Taming Nasdaq Volatility

By Gregory Bresiger

Stocks become less volatile when they move from Nasdaq to the Big Board. This is according to a recent Securities and Exchange memorandum, which was authorized as part of the staff research for the Reg NMS proposal.

"On average, stocks experience a significant decline in intraday volatility upon moving from Nasdaq to the NYSE. We find the same result regardless of whether we use five-minute return intervals to compute volatility, 60-minute intervals, or any other interval between five and 60 minutes," according to the SEC's Office of Economic Analysis (OEA).

The OEA, which monitored 91 stocks for some three years [see chart], nevertheless said this suggests that, "there is a greater tendency on Nasdaq for short-term stock deviations of stock prices away from their fundamental values."