Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209993 
Year of Publication: 
2011
Series/Report no.: 
Working Paper No. 2011/17
Publisher: 
Norges Bank, Oslo
Abstract: 
We use the introduction and the subsequent removal of the flash order facility (an actionable indication of interest, IOI) from Nasdaq as a natural experiment to investigate the impact of voluntary disclosure of trading intent on market quality. We find that flash orders significantly improve liquidity in Nasdaq. In addition overall market quality improves substantially when the flash functionality is introduced and deteriorates when it is removed.
Subjects: 
IOI
actionable indication of interest
flash orders
high frequency trading
market quality
market transparency
sunshine trading
JEL: 
G10
G20
G14
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-633-2
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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