With narrow bid-ask
spreads and the quick dissemination of information, there is little room to hide collusive activity.
The stock up 12c to $12.85 and Apr 13.5s trade across the exchanges for 17c, including a 12.9K block on PHLX with bid-ask
16 to 18c.
However, we document a more significant rise in bid-ask
spreads in the United States during the ban, driven primarily by an increase on the ask side of the market due to the relative scarcity of long sellers in the United States.
As shares shed 1% to $2.21 Wednesday after earnings, 40K Jan 2 puts traded 25.5c with bid-ask
21 to 34c and opened a new position (now represents more than half the aggregate OI in the name at 40.5K contracts).
Built on tight SPY option bid-ask
spreads, SPIKES Index offers radically faster dissemination, publishing every 100 milliseconds as opposed to every 15 seconds.
A liquidity provider is required to enter bid-ask
orders to permanently reduce the bid-ask
spread to 10 tick sizes or lower during the continuous session.
We examine the time-series relation between aggregate bid-ask
spreads and conditional equity premium.
Brennan recommends that advisors and investors evaluate bid-ask
spreads when choosing between similar ETFs.
420) categorize the bid-ask
spread as an explicit cost and Huang (2013, p.
Confronted with the potential loss, the liquidity providers may widen the bid-ask
spread to avert such loss.