Commentary

Anne Plested
Traders Magazine Online News

More Unanswered Questions

Anne Plested from Fidessa highlights potentially harmful effects of the MiFID II trading obligations for shares.

Traders Poll

As firms and venues begin to report trade data to the CAT, what is your biggest concern with the system and data?






Free Site Registration

March 23, 2005

Is Free Riding Good for Markets?

By Gregory Bresiger

Free riding can sometimes be helpful. That's the contention of pension fund TIAA-CREF Investment Management, which argues against the trade-through rule, in a report to the Securities and Exchange Commission. TIAA-CREF agrees that the NYSE plays a dominant role in price discovery, but nevertheless argues that "an ATS such as Liquidnet, ITG's POSIT, or any upstairs market maker can play a major role with regard to quantity discovery."

An ATS's quantity discovery role can have a positive effect on price discovery, according to the report by TIAA-CREF managing director Paul Davis, and professor Robert Schwartz.