<ul><li>Plato Partnership has released a new piece of independent academic research into how the market quality effects of fragmentation depend on the type of exchange competition.</li><li>The research investigates how different types of exchange competition influence market quality, in terms of market liquidity and efficiency.</li><li>The study focused on liquidity competition and found that market fragmentation is associated with liquidity benefits, but that boost depends on exchanges competing on liquidity provision.</li><li>The findings suggest that policymakers should prioritize competition on liquidity among fragmented marketplaces to reduce transaction costs.</li></ul>

Plato Publishes Research on Fragmentation & Market Quality

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