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The purpose of this paper is to test if the empirical relationship between the size of trades and market liquidity can be pooled across different block sizes on the London Stock Exchange (LSE).

The authors use pooling and non-pooling econometric tests in a panel framework.

When the authors differentiate between various block sizes, the authors find that for trades in excess of 50,000 shares, there is a positive association between the size of the trade and the bid-ask spread, due to a lack of liquidity in the financial market. The results provide strong evidence that an upstairs market may be required in order to provide liquidity for large block trades on the LSE.

This is the first study to directly test if the LSE requires an upstairs market to provide liquidity for large trade transactions.

The Chinese stock market is a typical emerging market with special features that are very different from those of mature markets. The objective of this study is to investigate whether and how these features affect the volatility‐volume relation for Chinese stocks.

This paper examines the roles of the number of trades, size of trades, and share volume in explaining the volatility‐volume relation in the Shanghai Stock Exchange with high frequency trade data used.

The results confirm that the volatility‐volume relation is driven mainly by the number of trades on the Chinese stock market. The number of trades explains the volatility‐volume relation better than the size of trades. Furthermore, some results are obtained that differ from those of mature markets, such as the US market. The results show that the second largest sized trades affect the volatility more than other trades on the Chinese market.

The results show that, in the Shanghai Stock Exchange, informed traders camouflage their private information or manipulation behavior through the second largest sized trades. The results may have important implications for work explaining the volatility‐volume relation on the Chinese stock market, further providing a reference by which to regulate emerging markets.

Taiwan OTC market is an electronic, order driven, call market. The purpose of this paper is to gain understanding of whether trade size or number of transaction provides more information on explaining price volatility and market liquidity in this market. The paper also aims to investigate how market condition can affect the relationship between information type and trading activities.

The paper uses data from the Taiwan OTC market to run the empirical tests. It divides firms into five size groups based on their market capitalization. Regression equations are run to test: whether number of transactions has a more significant impact on price volatility on the Taiwan OTC market; the impact of market information on number of transactions; the relative impact of firm specific and market information on number of transactions; and the impact of number of transaction of bid‐ask spread.

Findings show that the larger the number of transactions, the higher the price volatility. Smaller firms on the Taiwan OTC market are traded based on firm‐specific information. This relation is further affected by market trends. Especially for the larger firms, when the market is up and the amount of market information increases, number of transactions increases. When the market is down and the amount of market information increases, number of transactions decreases. Finally, it is found spread size is more likely to be influenced by number of transactions, instead of trade size. Overall, based on these empirical results, the information content of number of transactions seems to be higher than that of trade size in the Taiwan OTC market.

Investors now understand that number of transaction actually carry more information than trade size does.

The relation between market information and number of transaction, also that between market information and trade size is influenced by market condition. The paper fills a gap in the literature to show that market condition has an impact on the relation between information type and trader's behavior. A number of transactions are identified that provide more information than trade size does. It is also shown that market conditions can further affect the impact of information on trading activities.

The literature on positive feedback trading has grown considerably in recent years. The purpose of this paper is to provide a review of the theoretical and empirical literature on positive feedback trading and especially the literature related to the Sentana and Wadhwani (1992) model.

This literature review covers theoretical and empirical work in this area and it points out shortcomings and potential extensions of the basic feedback model.

The evidence so far points in the direction of positive feedback trading being present in aggregate stock market indices, index futures, bond markets, foreign exchange markets and individual stocks. There are some important issues that require further investigation. For example, it is likely that feedback trading is a function of longer lags of past return. Likewise, asymmetric behavior during up and down markets appears to be the rule rather than the exception. More importantly, the models should allow for positive as well as negative feedback and be general enough to investigate feedback trading behavior in individual assets and not just the aggregate market.

The discussion points out theoretical and empirical limitations and shortcomings of the extant literature.

This is the first paper to review positive feedback trading, implications, limitations and need for future research.

This paper aims to measure the trade price impact of a recent regulatory disclosure intervention in municipal securities secondary markets, which required broker-dealers to disclose securities trading information on a near-real-time and continuing basis.

The author analyzes trade price outcomes in the preintervention and postintervention regimes using a suite of time series estimations that give heteroskedasticity-robust standard errors (Prais–Winsten and Cochrain–Orcutt), accommodate higher-order lag structure in the error term (autoregressive integrated moving average) and account for volatility clustering in the time series (generalized autoregressive conditional heteroskedasticity).

Results show that regulatory disclosure intervention significantly improved trade price efficiency in municipal securities secondary markets as daily trade price differential and volatility both declined market-wide after the disclosure intervention.

The sample consists of trades in State of California general obligation bonds; therefore, empirical findings may not be generalizable to other states, local governments and different types of bonds.

The findings highlight voluntary information disclosure as a practical and effective mechanism in disclosure regulation of municipal securities secondary markets.

Only a small body of work exists that examines information disclosure regulation in municipal securities secondary markets; therefore, this paper expands knowledge on the topic and should provide renewed impetus for regulatory efforts aimed at improving the efficiency of municipal capital markets.

Although markets are intensely social, stock markets are peculiar in that they are normatively anonymous spaces. Anonymity is a difficult-to-achieve social accomplishment in which material identity information is successfully stripped from participants. The academic literature is conflicted regarding the degree to which equity markets are anonymous and how this influences traders’ behavior.

Based on focused, tape-recorded ethnographic interviews, this chapter investigates the work practices of professional investors and brokers to describe the conditions under which brokers veil or reveal investors’ identities to their competitors, and thereby shed light on how anonymity is socially produced (or eroded) in global stock markets.

The social structure of brokered financial markets places brokers in the awkward situation of sitting in an information-poor structural location for so-called “fundamental information” while being paid to share information with professional investors who sit in an information-rich structural location. A resolution to this material and social dilemma is that brokers can erode the market’s anonymity by gifting identity information (“order flow”) – the previous, prospective, or pending trades of their clients’ competitors – thereby providing traders a competitive advantage. They share identity information in three types of performances: transparent relationships, masked relationships, and the transformation of illicit material identity information into licit and sharable “fundamental” information. Each performance partly erodes transaction-level and market-level anonymity while simultaneously partially supporting anonymity.

Laws and regulations requiring brokers’ confidentiality of their clients’ trades are easily and systematically eluded. Policy makers and regulators may opt to respond by increasing surveillance and mechanization of brokers’ work so as to promote a normatively anonymous market. Alternatively, they may opt to question the value of promoting and policing anonymity in financial markets by revising insider trading regulations.

Even well-regulated markets are semi-anonymous spaces due to the systematic exposure of investors’ identities to competitors by their shared brokers on a daily basis. This finding provides an additional explanation for how professional investors can imitate one another (“herd”) as well as why subpopulations of investors often trade so similarly to one another.

Many scholars have reflected on Ricardo’s comparative advantage theory, but little has been said about Yoruba economic thoughts, especially in the exchange and distribution of articles of trade. Prior to the arrival of the Europeans and their activities in the economy of Yorubaland in the pre-colonial period, communities had traded in local, distant markets and across frontiers with neighbours in exchange for products different to the ones they produced. This happened because different towns had specialised in the production of articles which were environmentally suitable to it. Soil fertility, dictated by environmental factors, was a determining factor in what was produced, as agriculture was essentially the predominant economic activity. Textile industries were also established which equally stimulated long-distance trade as specialised clothes were made for export to neighbouring regions. A number of Yoruba towns have been selected for this analysis. The work presents Yoruba economic thoughts and initiatives, and the activities of the indigenous people in the pre-colonial period in Yorubaland and critically assesses the articles which different towns produced for export to other cities and kingdoms in Yorubaland and beyond. Primary source in form of interviews were conducted, proverbs, and secondary sources such as books and journals were also consulted for this work. The economic thought of the people based on specialising in advantaged goods or what they easily produced and achieved is worth historical investigation as a means of celebrating their economic thoughts in a free market.

This chapter highlights the importance of eco-quality and eco-standards as a determinant of socially responsible trading management and marketing. Starting from the premise that ecology internationalizes and becomes determinant of socially responsible marketing and management, we analyse trade competitiveness based on quality, marketing strategy for quality in trade, and correlation of trade and ecology.

Based on literature about quality and quality management, this chapter starts with an analysis of the importance of quality for trade and marketing strategy for quality in trade. Analysis shows that the issue of quality has always been present in trade, but mostly as a commercial requirement in the forming and functioning of buying and selling relations. However, the quality of products and services that are subject of buying and selling relations between producers, trade, and consumers cannot be viewed outside of space and time. It has its own evolution, which is closely related to the needs and demands of consumers. Historically observing, it can be concluded that the quality of the trade in market-developed countries has evolved from elementary characteristics of assortment quality (durability, utility), over the quality of service, to the eco-quality. Direction of quality evolution was determined by development of ecological awareness regarding vulnerability of the nature and environment. This is why the economies of certain countries are at different levels in terms of ecological economics and eco-quality.

It’s discovered that the consumer creates direction of evolution of eco-marketing and eco-management. He is becoming an active participant in the creation of “eco-package offer” of trading enterprises. Obliviousness of the eco-quality aspect, from trade toward the customer, represents an antimarketing act. Ecologically irresponsible management has double “punishment.” On the one hand, “punishment” comes from the consumer who does not buy the product, and on the other hand, socioeconomic environment is punishing it by using “polluter pays” principle. In order to act as an incentive for the creation of an eco-responsible marketing management, European Union (EU), World Bank, and European Bank for Reconstruction and Development have established a Fund for protection of the environment. Countries with recent label “in transition” (Poland, Czech Republic, and Slovakia) are allocating 2% of GDP for protection of the environment, while our country allocates less than 1% of GDP.

The chapter provides a starting point for further research in the field of ecological aspects of trade and correlation of trade and ecology.