Finance Professor Dr. Laura Cardella Presents Research at Esteemed Conference
By: Trevor Bell
Last week, Assistant Professor of Finance Dr. Laura Cardella presented her paper, "Make and Take Fees in the U.S. Equity Market" at the Joint Conference on Market Fragmentation, Fragility and Fees, hosted by Finra and the Center for Financial Policy in the Robert H. Smith School of Business at the University of Maryland. Dr. Cardella's work was one of only four papers to be selected among a broad search topic of fees and market fragility and fragmentation.
Held in Washington, D.C., the conference aimed to bring together leading academics studying questions of market structure, market participants with deep experience in how markets work, and domestic regulators with responsibilities in market oversight to facilitate a conversation about key challenges relating to market stability and market structure.
"We were excited to be involved in a practical discussion surrounding the current state and operating procedures of equity exchanges," Dr. Cardella said.
In the paper, Dr. Cardella partnered with Jia Hao, University of Michigan, and Ivalina Kalcheva, University of California, Riverside, to study the effect of liquidity-based make and take trading fees, charged by the U.S. stock exchanges, on market outcomes from 2008-10. The exchange-level analysis for tapes of securities shows that an exchange's trading activity decreased in its net fee (the net difference between the access fee and the liquidity rebate) and that an increase in the take fee decreased trading activity relatively more than an increase in the make fee.
For more information about her research, email Dr. Cardella at firstname.lastname@example.org.This supports the efforts outlined in the Rawls College of Business Strategic Plan. Learn more about the LEADER 2020 Strategic Plan and follow our progress on Twitter at #RawlsLeads.
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