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- Title
From free-for-all to self-governing monopoly: market organization and price information at the Amsterdam Stock Exchange, 1796–1940.
- Authors
de Jong, Abe; Jonker, Joost; Poukens, Johan
- Abstract
For most of its history Amsterdam securities trading was entirely unregulated and spread over various venues frequented by different social groups, handicapping price transparency. A public price current emerged only in 1796 and then with wide bid-ask spreads to protect margins. To combat the confusion a curious pricing method, the mid-price system, emerged during the nineteenth century. Tied to a market microstructure centring on hoekmannen (market makers), this system transited effortlessly from a public market into a monopoly by 1913, self-governing, still without any government regulation, and offering wide rent-seeking opportunities.
- Subjects
MARKET prices; STOCK exchanges; SECURITIES trading; MARKET pricing; MARKET makers; INFORMATION organization
- Publication
Financial History Review, 2022, Vol 29, Issue 3, p376
- ISSN
0968-5650
- Publication type
Article
- DOI
10.1017/S0968565022000154