A 1994 Study Concluded Dealers Were Colluding to Maintain Wide

question 72

Multiple Choice

A 1994 study concluded dealers were colluding to maintain wide bid/ask spreads by concentrating market quotes in quarters instead of eighths. This study eventually led to new order handling rules that required quotes to be available to the public through

• A) the NASDAQ market.
• B) electronic communications networks (ECN).
• C) high frequency trading (HFT).
• D) algorithmic trading (AT).
• E) intermarket trading system (ITS).

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Definitions:

Gorillas

Large primates native to African forests, known for their complex social structures and intelligence.

Tarsiers

Small, nocturnal primates with large eyes and very long hind limbs, native to Southeast Asia, known for their ability to make remarkable vertical leaps.

Suborder

A rank in the biological classification that is below order and above family, used in the classification of animals and plants.

Supraorbital Ridges

Bony ridges located above the eye sockets of many vertebrates, which can serve as sites for muscle attachment and protection for the eyes.