Island Goes Dark: Transparency, Fragmentation, and Regulation
2002年监管执法后，Island电子通信网络停止显示其最活跃ETF的限价订单簿，导致市场碎片化、价格调整变慢、交易成本上升；重新显示后市场质量改善，透明度和碎片化减少均起重要作用。
Responding to a September 2002 regulatory enforcement, the Island electronic communications network stopped displaying its limit order book in the three most active exchange-traded funds (ETFs) where it was the dominant venue. Island's share of trading activity and price discovery fell, fragmenting the market. ETF prices adjust more slowly when Island goes dark, and there is substantial price discovery movement from ETFs to the futures market. Trading costs increase on Island and decrease off Island, with higher trading costs overall. When Island later redisplays its orders, market quality improves, with transparency and the reduction in fragmentation both playing important roles. Copyright 2005, Oxford University Press.