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Liquidity begets liquidty, so it makes economic sense for exchanges to consolidate in a completely free market.
by maest 6y ago
Liquidity begets liquidty, so it makes economic sense for exchanges to consolidate in a completely free market.
- kasey_junk 6y agoIt makes sense all things being equal, but that isn’t the case. Even in the old consolidated system you had differentiation between the exchanges in the form of exchange rules which led to Nasdaq specializing in different listings than NYSE. If you look at the commodities exchanges they were even more specialized and splintered until legal interventions made those specializations less valuable. It was governmental intervention that made liquidity the only factor in exchange choice.