Abstract

This paper provides a unique opportunity to investigate the impact reduction in tick size towards Malaysian’s stock market liquidity by utilising spread and trading volume as proxies to market liquidity. The main function of tick size it is a tool to improvise the market liquidity, it is a tool to beautify the market liquidity. Using the components of FTSE-BMKLCI and closing daily data compiled starting from the implementation new tick size regime, from 3 August 2009 until the end of trading day 31 December 2014, this study found that, with the reduction in tick size, it reduces the spread significantly and there is a significant impact on trading volume.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.