• Dec
  • 12
  • 2005
  • 9:15 AM

The winner and still champeen...

By: Ray Pellecchia
File Under: NYSE

... in the arena of trading costs is the Big Board. But don't take our word for it. Read "Cost Conscious" by Justin Schack in the November Institutional Investor magazine. Article is based on Elkins/McSherry's annual survey of trading costs in markets around the world. E/M is a respected independent transaction-cost analysis firm.

Article says that in the U.S., the NYSE has by far the lowest trading costs (23.26 basis points at NYSE, 23 percent cheaper than Nasdaq's 30.32 basis points).

Particularly notable is the difference in market impact: 8.31 basis points at NYSE vs. 13.51 at Nasdaq, a difference of 38 percent.

Just as important, our lower costs are continuing to decline in 2005 (down 2.61 basis points from 2004, to be exact), the article says.

Clip and save those facts in your head for the next time someone says that Nasdaq is oh-so-efficient. How efficient is it to spend more money to get your trade done?

Here's the link to piece, but if you're not a subscriber, you'll have to get yourself to a newsstand for the hard copy.
http://www.institutionalinvestor.com/default.asp?Page=1&PUB=62&ISS=20904&SID=596304&SearchStr

Comments

I would love to read this article; however, it appears that one needs to subscribe to Institutional Investor to do so.

Brian -- The magazine is also sold in some bookstores and newsstands. Hard copy lists two phone numbers: main number at 212.224.3300, customer service at 800.945.2034. Hope that's of some help. -- RP

by Brian Egras on December 12, 2005 12:04 PM

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