Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/189286 
Authors: 
Year of Publication: 
2000
Series/Report no.: 
Queen's Economics Department Working Paper No. 997
Publisher: 
Queen's University, Department of Economics, Kingston (Ontario)
Abstract: 
This paper documents order submission strategies during the Toronto Stock Exchange's pre-opening session. I find that the registered trader (RT) actively participates in the market opening despite not being able to set the opening price directly and not having an apparent informational advantage. I find that RT opening trades are profitable, are able to moderate overnight price changes, and may be motivated, in part, by inventory adjustment concerns. I focus on interlisted stocks that simultaneously open for trading under two different mechanisms and show how the comparative levels of pre-trade market transparency of each exchange impacts RT profits and participation.
Subjects: 
Registered trader
market transparency
interlisted securities
price discovery
JEL: 
g10
Document Type: 
Working Paper

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