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Book part
Publication date: 29 July 2009

Partha Gangopadhyay and Manas Chatterji

The fragmentation can either lead to an all-out civil war as in Sri Lanka or a frozen conflict as in Georgia. One of the main characteristics of fragmentation is the…

Abstract

The fragmentation can either lead to an all-out civil war as in Sri Lanka or a frozen conflict as in Georgia. One of the main characteristics of fragmentation is the control of group members by their respective leaders. The chapter applies standard models of non-cooperative game theory to explain the endogenous fragmentation, which seeks to model the equilibrium formation of rival groups. Citizens become members of these rival groups and some sort of clientelism develops in which political leaders control their respective fragments of citizens. Once the divisions are created, the inter-group rivalry can trigger violent conflicts that may seriously damage the social fabric of a nation and threaten the prospect of peace for the people for a very long time. In other words, our main goal in this chapter is to understand the formation of the patron–client relationship or what is called clientelisation.

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Peace Science: Theory and Cases
Type: Book
ISBN: 978-1-84855-200-5

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Book part
Publication date: 11 December 2006

Nivine Richie and Jeff Madura

Stock markets during the day are relatively centralized, while night markets, due to the dominance of electronic trading venues, are fragmented. Though electronic markets

Abstract

Stock markets during the day are relatively centralized, while night markets, due to the dominance of electronic trading venues, are fragmented. Though electronic markets at night allow more competition for order flow, they may result in decreased order interaction and decreased transparency. Using transaction data for three exchange traded funds (ETFs), we find that bid–ask spreads are wider at night due to higher order processing costs, market maker rents, and inventory holding costs. Results show that night markets are informationally fragmented and are not able to impound information available in net order flow to the same degree as day markets.

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Research in Finance
Type: Book
ISBN: 978-1-84950-441-6

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Article
Publication date: 1 August 2016

P. Joakim Westerholm

Abstract

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International Journal of Managerial Finance, vol. 12 no. 4
Type: Research Article
ISSN: 1743-9132

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Article
Publication date: 1 August 2016

Benjamin Clapham and Kai Zimmermann

The purpose of this paper is to study price discovery and price convergence in securities trading within a fragmented market environment where stocks are traded on…

Abstract

Purpose

The purpose of this paper is to study price discovery and price convergence in securities trading within a fragmented market environment where stocks are traded on multiple venues. The results provide novel empirical insights questioning the generalizability of the current literature and aim to expand the understanding of price determination in a fragmented market microstructure.

Design/methodology/approach

This paper provides an empirical data analysis based on an event study methodology. The authors applied Thomson Reuters Tick History data covering German blue chip stocks listed on multiple venues in 2009 and 2013. Different time aggregations up to one second are applied to provide an in-depth analysis.

Findings

The paper empirically discovers a persistent price leader-follower relationship not only during intraday auctions but also in subsequent continuous trading. The authors found that trading on alternative venues instantly dries out in case the dominant market switches to a call auction. In these situations, alternative markets await and adopt the official price signal of the dominant market although prices on alternative venues still indicate a certain extent of price discovery. This phenomenon remains persistent at different levels of market fragmentation, indicating that alternative trading venues fully accept the price leadership role of the dominant market, no matter their own market share.

Originality/value

This paper provides an innovative empirical setup to analyze price co-movement and convergence based on high-frequent data. Further, the results provide novel and robust insights into the price determination process in fragmented markets that clarify the role of price follower and price leader.

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International Journal of Managerial Finance, vol. 12 no. 4
Type: Research Article
ISSN: 1743-9132

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Article
Publication date: 18 May 2015

Nathalie Oriol, Alexandra Rufini and Dominique Torre

The purpose of this paper is to consider competition’s issues between European market firms, such as Euronext, and multilateral trading facilities, following Markets in…

Abstract

Purpose

The purpose of this paper is to consider competition’s issues between European market firms, such as Euronext, and multilateral trading facilities, following Markets in Financial Instruments Directive’s enforcement. This new domestic competition is adding to the existing international competition among financial centers. While diversification of local trading services can improve the international competitiveness of a financial center, the fragmentation of order flows can harm its attractiveness.

Design/methodology/approach

The theoretical setting analyzes the interaction between heterogeneous who experiment network externalities, and heterogeneous local trading services providers (alternative platforms and incumbent) in an international context. The authors compare two forms of organizations of the market: a consolidated market, and a fragmented market with alternative platforms – in both cases, in competition with a foreign universe.

Findings

The results of this study point out the importance of the trade-off between diversification and externalities. With alternative platforms entry, enhanced competition decreases fees and redistributes informed investors between the foreign market and the domestic one. The increase of domestic platforms’ number then has more complex effects on externalities (of information and liquidity). When the liquidity externalities are low, the diversification of financial platforms increases the number of investors on domestic centers. When liquidity externalities are not negligible, despite the decrease of fees, this same diversification orientates more informed investors to the foreign center.

Originality/value

This model is the first to analyze jointly the internal and international competition of trading platforms with heterogeneous investors.

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The Journal of Risk Finance, vol. 16 no. 3
Type: Research Article
ISSN: 1526-5943

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Article
Publication date: 1 April 1997

A. Fuat Firat and Clifford J. Shultz

Attempts to contribute to the growing literature on postmodernism and marketing by addressing the changes in the market and the corresponding changes that have to take…

Abstract

Attempts to contribute to the growing literature on postmodernism and marketing by addressing the changes in the market and the corresponding changes that have to take place in marketing strategies. Assesses the implications of postmodernism for marketing managers and other marketing practitioners, and proposes the marketing strategies that are needed to respond to the changes in the market with the growing influence of postmodernity. Discusses directions for future research.

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European Journal of Marketing, vol. 31 no. 3/4
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 May 1992

Michel Robert

Although corporate executives would claim that they are constantly bombarded by changes that affect their businesses, in reality there are very few macro‐changes that have…

Abstract

Although corporate executives would claim that they are constantly bombarded by changes that affect their businesses, in reality there are very few macro‐changes that have significant impact on corporations. However, if the CEO fails to recognize these macro‐trends, it could mean corporate death. On the other hand, the CEO that does detect a macro‐change early in its evolution and constructs a strategy to capitalize on it can reap substantial rewards.

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Journal of Business Strategy, vol. 13 no. 5
Type: Research Article
ISSN: 0275-6668

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Article
Publication date: 27 July 2010

Giovanni Petrella

The purpose of this paper is to evaluate how markets in financial instruments directive (MiFID) and regulation national market system (Reg NMS) affect the competition for…

Abstract

Purpose

The purpose of this paper is to evaluate how markets in financial instruments directive (MiFID) and regulation national market system (Reg NMS) affect the competition for order flow among trading venues in, respectively, Europe and the USA.

Design/methodology/approach

The paper examines the differences between MiFID and Reg NMS and provides, based on market microstructure principles, insights as to their likely impact on European and the US securities markets.

Findings

Although MiFID and Reg NMS share the common objective of enhancing competition in securities markets, they adopt different provisions with respect to three issues that strongly influence the competition for order flow among trading venues. Specifically, some of the provisions set forth by the US regulation with respect to the best execution duty, the consolidation of market data and the disclosure of execution quality information appear to be more effective, compared to the European Union ones, in strengthening competition for order flow among trading venues.

Research limitations/implications

Regulatory factors can only partly explain the current structure of the European and US securities markets. Technology and heterogeneity in traders' demand are other important factors that concur in shaping the European and US markets.

Practical implications

The degree of competition for order flow among trading venues depends on how regulations define the best execution duty, the availability of updated and consolidated pre‐trade (i.e. quotations) and post‐trade (i.e. transactions) information and the efficiency of post‐trading infrastructures.

Originality/value

The paper addresses issues not yet investigated and provides valuable insights for financial intermediaries, incumbent and prospective exchanges as to the competition in the securities industry, and to regulators as to the likely impact of the new regulations.

Details

Journal of Financial Regulation and Compliance, vol. 18 no. 3
Type: Research Article
ISSN: 1358-1988

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Book part
Publication date: 14 January 2019

Bilgehan Bozkurt

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Debates in Marketing Orientation
Type: Book
ISBN: 978-1-78769-836-9

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Article
Publication date: 1 March 1992

David Shani and Sujana Chalasani

Discusses niche and relationship marketing strategies as responsesto fragmentation of the mass market. Considers the differentperspectives of these approaches and how the…

Abstract

Discusses niche and relationship marketing strategies as responses to fragmentation of the mass market. Considers the different perspectives of these approaches and how the two may be integrated into an overall marketing strategy. Concludes that marketers need to move from a top‐down approach of segmentation to a bottom‐up approach of aggregating individual needs, and an integrative relationship marketing system using a customer database is a way of doing so.

Details

Journal of Consumer Marketing, vol. 9 no. 3
Type: Research Article
ISSN: 0736-3761

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