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dc.contributor.authorSharma, Udayen_US
dc.contributor.authorTeng, Rachel Rui Qien_US
dc.contributor.authorTurakhia, Devasrien_US
dc.identifier.citationSharma, U., Teng, R. R. Q. & Turakhia, D. (2021). Dark pool trading with varying tick size, lot size and pricing rule : an experiment. Final Year Project (FYP), Nanyang Technological University, Singapore.
dc.description.abstractDark pools are decentralized trading venues where financial securities are traded without pre-trade transparency. Although initially used primarily by institutional investors, dark pools have been gaining popularity among retail traders. Using an experimental approach, we studied the performance of markets in the presence of dark pools when varying tick size, introducing institutional traders, and using alternate pricing mechanisms in the dark pool. We had eight separate experimental treatments. Data collected from sixteen sessions showed that widening the tick size decreases the price efficiency in the market, and this was largely contributed by the uninformed traders in the lit market. Further, we found that compared to retail traders, institutional traders prefer using dark pools and aggressive orders. This was because lot size restrictions reduced the bid-ask spread prevalent during transactions. Finally, we found that using an alternate pricing mechanism in the dark pool affects the market liquidity, but not the price efficiency.en_US
dc.publisherNanyang Technological Universityen_US
dc.subjectSocial sciences::Statisticsen_US
dc.subjectSocial sciences::Economic theory::Microeconomicsen_US
dc.titleDark pool trading with varying tick size, lot size and pricing rule : an experimenten_US
dc.typeFinal Year Project (FYP)en_US
dc.contributor.supervisorYohanes Eko Riyantoen_US
dc.contributor.schoolSchool of Social Sciencesen_US
dc.description.degreeBachelor of Arts in Economicsen_US
dc.description.degreeBachelor of Social Sciences in Economicsen_US
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