Plato Releases Independent Research On Tick Size, Market Quality, And Market Structure

Plato today published independent academic research titled “Tick Size, Market Quality, and Market Structure.” The research has been commissioned as part of Plato's MI3 Market Innovator initiative, which aims to advance market transparency and efficiency through commissioning independent academic research on key topics chosen by the committee.

The research has been conducted by Giovani Cespa, Professor of Finance at Bayes Business School, City, University of London.

The Research Includes:

Analysis of the impact of tick size variations on liquidity provision and trading costs.
Examination of how regulatory interventions and competitive pressures influence market quality.
Insights into the implications of tick size changes on corporate activities such as managerial learning from stock prices and shareholder monitoring.

Cespa's research underscores the complex interplay between tick size, market quality, and market structure, highlighting the importance of a nuanced understanding of these dynamics in shaping effective market regulation and trading strategies.

The release of this research underlines Plato’s ongoing commitment to fostering collaboration and innovation in financial markets. As part of its MI3 Market Innovator initiative, Plato continues to support independent academic research aimed at enhancing market transparency and efficiency.

Click here to download the report.