Short term effects aside, they may bring price continuity
and balance to the markets, he said.
We have enjoyed nearly 100 years of depth and liquidity in our capital markets coupled with price continuity
that has only recently been fouled.
Mario Panayides, Yale University, "The Specialist's Participation in Quoted Prices and the NYSE's Price Continuity Rule"
By partitioning Specialist actions as active or passive, conditioned on the Price Continuity Rule, Panayides shows that the Specialist engages in active inventory rebalancing throughout the trading day.
Because call and continuous trading mechanisms may differ in their ability to impound information in price and because specialists are required to maintain price continuity during the trading day, it is possible that the price discovery process will differ for trading- and nontrading-hours announcements on the NYSE.(9)
Supplemental Analysis: Price Continuity and Volume Results
Set a relationship between fees charged directly to patients and client fees to insure some form of price continuity
. We use a formula of 30 per cent of our client fee for a test plus $5 to attain the patient price.