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This paper evaluates the impact of the Chicago Mercantile Exchange's (CME) decision to close the livestock futures pits on the execution quality of customer orders. Our findings suggest that, prior to its closure, the livestock futures pit offers high immediacy execution and attracts large orders. Because such high immediacy orders generally execute faster and cost more, their migration to the electronic market after the pit closure explains why the execution of electronic orders becomes on average speedier and more expensive for customers who used to be active pit users. However, our results also indicate that these pit‐user customers face a lower overall execution cost following the pit closure when we account for all their orders, pit and electronic. [ABSTRACT FROM AUTHOR]

Copyright of Ialam is the property of Arab Federation for Libraries & Information and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The authors suggest a methodology that involves conducting a preliminary analysis of inertia in financial time series. Inertia here means the manifestation of some kind of long-term memory. Such effects may take place in complex processes of a stochastic kind. If the decision is negative, they do not recommend using predictive management strategies based on trend analysis. The study uses computational schemes to detect and confirm trends in financial market data. The effectiveness of these schemes is evaluated by analyzing the frequency of trend confirmation over different time intervals and with different levels of trend confirmation. Furthermore, the study highlights the limitations of using smoothed curves for trend analysis due to the lag in the dynamics of the curve, emphasizing the importance of considering real-time data in trend analysis for more accurate predictions. [ABSTRACT FROM AUTHOR]

The paper analyses the effect of electronic-trading (e-trading) on the wholesale prices of select commodities in agricultural marketplaces to aid agrarian income levels. Post a literature review, the researcher performed a field survey to get the opinions of 371 farmers and traders. The researcher also conducted the descriptive statistical analysis, the difference in differences analysis, and the t-test analysis to show the wholesale price improvement after the e-trading platform implementation. The field survey findings and the statistical analysis suggest an increase in average wholesale prices of select agri-commodities in select markets of India due to the National Agriculture Market (eNAM) e-trading platform effect. The suggestions to practitioners and social policymakers highlight an improvement in the functioning of e-trading in terms of better prices for farmers, lowering transaction costs, increased transaction speed, reduced administrative hurdles, improved infrastructure and eventually higher income for a farmer. The knowledge base developed in this paper will help researchers reduce the knowledge gap in agricultural pricing.

Commodity index rolling is treated as a natural experiment and an event study of order flow costs in a wide array of futures markets is conducted. The spread between nearby and deferred futures prices decreases significantly in the early and growth phases of financialization (1991–2011), with the spreads reversing back after rolling is completed. Spread impacts disappear in the post‐financialization period (2012–2019). We argue that a dramatic increase in the supply of liquidity brought on by the transition to electronic trading in commodity futures markets is primarily responsible for the decline of roll order flow costs. [ABSTRACT FROM AUTHOR]

Copyright of El-Bahith is the property of University of Kasdi Merbah Ouargla and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The authors suggest a methodology that involves conducting a preliminary analysis of inertia in financial time series. Inertia here means the manifestation of some kind of long-term memory. Such effects may take place in complex processes of a stochastic kind. If the decision is negative, they do not recommend using predictive management strategies based on trend analysis. The study uses computational schemes to detect and confirm trends in financial market data. The effectiveness of these schemes is evaluated by analyzing the frequency of trend confirmation over different time intervals and with different levels of trend confirmation. Furthermore, the study highlights the limitations of using smoothed curves for trend analysis due to the lag in the dynamics of the curve, emphasizing the importance of considering real-time data in trend analysis for more accurate predictions.

Global business changes and technology development open up new opportunities for banks to improve the quality of their services while reducing costs and increasing efficiency. One of the consequences of accelerated technological development and the efforts of banks to increase competitiveness is the emergence of electronic or internet banking. Electronic banking in Serbia began to be applied somewhere in 2003, but at a much slower pace than in developed countries. The main limitations of the insufficient use of electronic banking are related to the still insufficient use of the Internet and advanced technology, the resistance of the population to changes, the weak information system and the lack of information. Recently, the development of e-business in Serbia has been faster, and the assumptions are that this development will continue, especially in terms of the use of mobile banking. Banks should make efforts to create a culture of trust among customers and promote e-banking services, in order to influence public awareness of the positive aspects of this form of banking services. The paper describes the origin, current development and future perspectives of the use of electronic banking in the Republic of Serbia.

The paper analyses the effect of electronic-trading (e-trading) on the wholesale prices of select commodities in agricultural marketplaces to aid agrarian income levels. Post a literature review, the researcher performed a field survey to get the opinions of 371 farmers and traders. The researcher also conducted the descriptive statistical analysis, the difference in differences analysis, and the t-test analysis to show the wholesale price improvement after the e-trading platform implementation. The field survey findings and the statistical analysis suggest an increase in average wholesale prices of select agri-commodities in select markets of India due to the National Agriculture Market (eNAM) e-trading platform effect. The suggestions to practitioners and social policymakers highlight an improvement in the functioning of e-trading in terms of better prices for farmers, lowering transaction costs, increased transaction speed, reduced administrative hurdles, improved infrastructure and eventually higher income for a farmer. The knowledge base developed in this paper will help researchers reduce the knowledge gap in agricultural pricing. [ABSTRACT FROM AUTHOR]

In this bibliometric study, the significant transformations in the financial sector brought about by automation and technological advancements from 1984 to 2022 are explored. A total of 863 articles is analyzed, and a consistent upward trajectory in research focused on fast trading technologies and algorithmic strategies is identified. The key findings reveal that the research is grouped into five thematic clusters, ranging from algorithmic trading and machine learning to systemic risks associated with high-frequency trading and the impacts of algorithmic trading on market quality. This study encapsulates the evolving landscape of financial markets, emphasizing emerging trends in cryptocurrencies and machine learning, which will continue to shape future research directions. In conclusion, five macroareas and ten specific future research areas are proposed. [Display omitted] • We provide a bibliometric analysis of 863 articles published from 1984 to 2022. • The article discusses the effects of automation on market dynamics, trading strategies, efficiency, and systemic risks. • Finally, we conclude by identifying future trends in financial technology and areas for further research. [ABSTRACT FROM AUTHOR]

The first part of the article shows that modern consumer society, with all the fairness of its negative ethical assessments, has reduced the threat of overproduction of huge volumes of similar consumer goods and, at the same time, has stimulated the creation of new places of employment. This is justified by the data on the multiple expansion of the range of products and services demanded by the consumer. The second part of the article shows the most important foundations for the functioning of the information society, which ensured its expansion beyond corporate and national borders and transformation into a global phenomenon of our time. The unique role of the Internet in “mass digitalization”, in the formation of the “digital economy” and in the constant expansion of the consumer layer of its goods and services is analyzed. In the third part of the article, the organic and complementary combination of consumer society and information society features is called the information society of consumption.

Historically, tax reforms have always been a response to societal transformations, which aim to modernize relations between states, businesses and citizens. The contemporary digital transformations of social relations intensified by globalization have become another challenge. The tax system has been at the centre of ongoing changes. Consequently, there arises a need for reforms of tax systems. Likewise, it is necessary to reassess and review the principles ensuring the efficiency of such systems.The research aim is to investigate the impact of the digital society and economy on tax equity. This purpose also includes a critical analysis and a summary of the ways in which tax systems in different countries and corporations respond to digital challenges. The challenges in question are associated with tax burden on the activity of the abovementioned entities when they implement business models in virtual reality.The research methodology is based on the fundamental principles of the Russian tax law with particular regard to the mandatory elements of taxation. Additionally, the research method involves the classical principles of taxation such as equity, certainty, convenience and economy. The authors have also developed an original approach to consider the formation of excess profits by digital companies and digital rentiers.The analysis of the terms ‘digital presence’, ‘market jurisdiction’ was conducted with due consideration of jurisdiction in digital markets directly related to the activity of digital platforms. The paper also examined the potential opportunities and dangers that arise in the process of automated payment of taxes in each deal. Furthermore, specific problems regarding the determination of border crossing by an intangible asset or a provided service which can consist of both a tangible asset and a digital service were addressed. The research on the impact of digital solutions in business was performed in conjunction with the analysis of the European approach to similar issues. In accordance with the European framework, attribution of profits to the jurisdictions of those countries where consumers reside establishes the principles of equity. Based on this evidence, therefore, it was demonstrated that it is becoming a fundamental necessity in modern society to increase tax certainty of virtual businesses despite the opportunist attitude of some companies (with respect to national governments) as well as governments (with respect to the global economy). As taxpayers’ physical presence in a particular jurisdiction to generate profits which form the tax base is no longer required, a balance between national tax systems and the appearance of supranational taxation should be found. This objective poses a risk of failing to provide conditions necessary to ensure tax equity.The thesis that tax competition exists in countries and various territories was supported, which enabled the authors to demonstrate potential of concerted effort to develop supranational taxation aimed at tax equity restoring. Furthermore, such mandatory elements of taxation as ‘object of taxation’, ‘tax base’, ‘tax rate’ are still valid in the digital world. At the same time the evolution of business models used by digital and supranational companies, servicization of the economy, digital service development and smart products creation require revising the definitions of these terms.

The object of research is the public procurement system in terms of accounting for the processes of buying (selling) goods (works, services) using electronic communications. A problematic aspect of modern electronic public procurement platforms is the lack of information support for accounting, control and taxation functions. In the context of the development of innovative computer and communication technologies, it becomes possible to integrate various electronic services and electronic communications into the public procurement system in order to automate accounting processes. In the process of studying the prospects for the implementation of a system of public communications with expanded functional capabilities, general scientific empirical, logical and historical methodological methods of cognition of reality were used. The theoretical and methodological aspects of improving the accounting of public procurement in the context of the formation of an innovative electronic platform for business communications were studied on the basis of institutional and innovative methods of scientific research. The paper proposes to place electronic contracts at the heart of the business communications system. A procedure has been developed for business interaction between participants in electronic trading through the mechanism for concluding and executing electronic contracts for the purchase (sale) of goods (works, services). Based on the creation of a system of electronic contracts, it is possible to form a database of credentials. The expediency of using accounting information for the automated implementation of public procurement accounting procedures has been substantiated. The methodology for accounting for the occurrence and repayment of accounts payable and receivable for purchased (sold) goods (works, services), charging and paying taxes and fees, electronic money transactions in various currencies, electronic money and cryptocurrency, the occurrence of credit obligations, calculating the amount of bad debts has been improved. The implementation of a public procurement system with expanded functionality will facilitate the establishment of effective business communications with contractors, the integration of disparate electronic services into a single system. As well as minimizing costs in the process of electronic trading, automating the processing of primary information, optimizing accounting and management processes at the enterprise. [ABSTRACT FROM AUTHOR]

This article examines how selected attributes of Bordeaux fine wines (producer, vintage, quality, bottle size, case, flaws, and transaction volume) affect prices in three types of trading venues: auctions, electronic exchange, and the over-the-counter (OTC) market. The findings indicate a price differentiation across the venues. Wine aging leads to relatively higher prices at auctions than on the electronic exchange or the OTC. There is a nearly linear relationship between prices and wine ratings, the strongest of which is found in the case of auctions. The bottle size effect is mostly positive for supersized formats and is the strongest on an electronic exchange and the weakest at auctions. The transaction volume negatively affects wine prices in all the trading venues. The simulation results facilitate the construction of more realistic trading models and may help traders make more informed decisions on the choice of a trading venue, depending on the wine characteristics. (JEL Classifications: D40, G12, Q14, L66) [ABSTRACT FROM AUTHOR]

International negotiable financial instrument markets have a high level of electronic trading. It is displayed using the consolidated limit order book, the widening the range of trading orders, smart order routing, high speed access to the market on the basis of latency minimizing. The result of electronic trading is the development of high-frequency trading, the positive features of which are the increase of trading activity and market liquidity, and the reducing of transaction costs. The main drawback of high-frequency trading is the potential negative impact on market stability (software failures, the manipulative incentives of algorithmic strategies, in particular, technical arbitrage, the use of homogeneous strategies, cyber risks). The current system of high-frequency trading requires particular actions from the regulators to overcome information gaps and enhanced monitoring to create a regulatory environment that could take into account both the aspects of supporting market development and its stability through appropriate macroprudential instruments, especially the implementation of the stress testing of the high-frequency algorithms in response to the shocks of various origin, taking into account the aggregate market effect of the mutual influence of different algorithmic strategies.

We study the impact of electronic trading in India via two distinct approaches. First, in a more traditional way, we model the data generating process (DGP) of share price index for different trading regimes using an AR-GARCH filter. Our results indicate regime-invariant nature of the DGP. Subsequently, we employ rolling Hinich Bicorrelation test to AR-GARCH-filtered standardized residuals to examine the degree of efficiency of Indian share price index across trading regimes. Our results indicate a distinct improvement in informational efficiency of Indian share price index pursuant to adoption of electronic trading systems. [ABSTRACT FROM AUTHOR]

Copyright of Accounting & Financial Studies Journal is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Iraq Journal of Market Research & Consumer Protection / Al-Mağallaẗ al-ʿIrāqiyyaẗ li-Buḥūṯ al-Sūq wa-Ḥimāyaẗ al-Mustahlik is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Gold, used for jewelry and ornaments at times, is now considered a safe metal for investment. In addition to buying and selling gold physically, some markets offer electronic trade in gold. Trade volume is on surge in these bullion markets with each passing day. Daily opening and closing gold prices are used for analysis for 7740 days. Data series of daily return on investment in gold is split into two data series; first when the price goes up and second when the price goes down, at the day's end. Statistical properties of three data series are analyzed and probabilities to earn profits are calculated during any day regardless of what types of decisions are going to be made that day. Probabilities of daily return, for both long and short positions, are presented in the form of tables. The expected daily profit of a trader with associated probability is explained in an illustrative example. [ABSTRACT FROM AUTHOR]

Copyright of Revista do Serviço Público (Civil Service Review) is the property of Revista do Servico Publico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Information systems can serve as intermediaries between the buyers and the sellers in a market, creating an "electronic marketplace" that lowers the buyers' cost to acquire information about sellers' prices and product offerings. Although electronic trading systems provide potential to create an efficient market structure, we witness that a $45 trillion fixed-income market still makes little use of these systems. Low penetration of electronic trading systems in the marketplace is at odds with the existing information technology research doctrine. The reason is that the creation of efficient market structure through an electronic marketplace is based on macro-level interfirm relationships that do not take into account the recurrent micro-level, interpersonal interaction among the market actors. Our empirical investigation, based on face-to-face interviews with 90 fixed-income senior managers and traders from 25 financial institutions, provides a unique insight into the social capital based on social networks of interpersonal relationships in the fixed-income market. Our research findings show that the market structure of embedded interpersonal ties enables participants to take advantage of information asymmetry for profit taking. As a result, imposition of solely electronic trading systems on the present fixed-income market structure is at odds with the present interfirm market norms and business processes enacted for large transactions among market makers and institutional investors. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to present an overview of the flash crash, and explain why and how it happened. Design/methodology/approach - The author summarizes several studies suggesting various perspectives on the flash crash and its causes. Furthermore, the author highlights recently proposed and introduced improvements and regulations to reduce the risk of having similar market collapses in the future. Findings - It is an overview paper that highlights the state of the art on the subject. Research limitations/implications - Paper does not report any research findings of the author. Practical implications - High-frequency trading (HFT) along with its pros and cons is the new normal for most of the current electronic trading activity in the markets. It is well recognized by the experts that HFT may have its important shortcomings whenever the rules and regulations are not up to date to match the technological progress offering faster computational and execution capabilities. Social implications - HFT has created a societal discussion about its benefits and potential deficiencies as the common practice for trading due to potentially unequal access to market data by various categories of participants. Such arguments help the regulators to develop improvements to reduce the market risk and nurture more robust and fair markets for all. Originality/value - The paper has a tutorial value and summarizes the current state of HFT. The readers of more interest are guided to the most relevant literature for further reading.

In a securities market, the initiator of a large transaction can expect the realized price of his or her trade to be inferior to the current market price immediately prior to his appearance in the market. This "transaction implementation cost" phenomenon is a major concern of institutional money managers, both in portfolio selection and in trade implementation strategy. A considerable amount of current research in finance theory deals with modeling and prediction of these costs for equities trading, and commercial products and services recently have become available for probabilistically estimating real-time transaction implementation costs versus transaction size on a stock-specific basis. Earlier papers described the concept of satisfaction- or preference-based trading, with optimization of trade matching on the basis of mutual preference. A market structure based on this design began trading listed equities on the Pacific Exchange on January 29, 1999 under the trade name OptiMark Registered Trademark. The Nasdaq market plans to begin trading using the OptiMark system later in 1999, followed by the Osaka Securities Exchange and the Toronto Stock Exchange in 2000. A prima-facie benefit of this approach is the ability to specify trading strategies that explicitly account for transaction implementation cost estimates as a function of the trade size. In this paper, the authors present the underlying theoretical framework that unites the concepts of preference-based trading and probabilistic transaction cost estimation. In particular, they develop an analytical generalization of the current market structure constructs of market orders and limit orders. They describe a feasible optimization problem whose solution yields optimal preference profiles, given current market conditions (as reflected by the probability distribution of transaction implementation cost) and a trader-specified coefficient of urgency. [ABSTRACT FROM AUTHOR]

Price discovery is the incorporation of information to prices through the actions of traders. Previous studies in financial markets have found evidence that informed traders may submit limit orders instead of market orders as part of their trading strategies. If so, the steps of limit order book (LOB) beyond the best bid and best ask spread (BAS) may contain valuable information and contribute to price discovery of the underlying asset. This is the first attempt to examine the informativeness of the LOB beyond the BAS for agricultural commodities. We reconstruct the LOB using market depth data and use three information share approaches to test to what extent the steps of LOB beyond the BAS contribute to price discovery. This is done for five major agricultural commodities, namely live cattle, lean hogs, corn, wheat, and soybeans, as well as the E-mini Standard and Poor's 500 Index (S&P 500) futures contracts. The results show that the steps of the LOB beyond the BAS contribute by over 27% to price discovery of futures contracts. Across agricultural commodities, the steps of the LOB beyond the BAS have more information for grains than meats. Moreover, beyond the BAS, the steps closer to the top of the book contain more information for livestock and E-mini S&P 500. For grains, the steps farther from the BAS are as informative as the steps closer to the BAS. These findings suggest that informed traders in futures electronic markets actively use limit orders with price steps beyond the BAS. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Financial, Accounting & Managerial Studies is the property of Journal of Financial, Accounting & Managerial Studies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Brazilian Review of Finance / Revista Brasileira de Finanças is the property of Sociedade Brasileira de Financas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper supplies methodological support for trading system development. It provides a formal framework for the systematic definition of market structures and the specification of trading services. Market structure describes the interaction among traders, and trading services identifies the trading system interface and the description of the system behavior. The framework provides guidance in applying "trace specifications" as a formal description technique for both market structure and trading services. It also details how to formally assess market structure and trading service properties. Moreover, the framework introduces concepts for building market structure taxonomies that support the systematic search and development of alternative forms of markets. The taxonomies are collections of trace specifications for market structures with specialization and extension relationships defined between them. Improvements in market quality and efficiency should result from such a disciplined and systematic approach to market structure and trading services definition and implementation. [ABSTRACT FROM AUTHOR]