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PIP Transactions Price Improvement Infor by Vinay Sonu Sawant is a document available to read on EtoBox.
This study analyzes the Price Improvement Process (PIP) at the Boston Options Exchange and its effects on order execution quality, particularly on bid-ask spreads. The findings indicate that while PIP transactions temporarily narrow effective spreads, they are associated with wider quoted spreads and allow market makers to benefit from informed traders, supporting the cream-skimming hypothesis. Ultimately, the research concludes that PIP does not enhance market efficiency but rather enables market makers to
- Author
- Vinay Sonu Sawant
- Language
- EN