The retail execution quality landscape☆

• 成果类型: Article
• 署名作者: Dyhrberg, Anne Haubo; Shkilko, Andriy; Werner, Ingrid M.
• 署名单位: Wilfrid Laurier University; Macquarie University; University System of Ohio; Ohio State University; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2025.104051
• 发表日期: 2025
• 关键词: Retail trading; Wholesalers; Execution quality

摘要

We demonstrate that off-exchange (wholesaler) executions provide significant cost savings to retail investors. Wholesaler concentration has raised regulatory concerns; however, we show that the largest wholesalers offer the lowest costs due to economies of scale. The entry of a new large wholesaler reduces incumbent scale economies, resulting in higher execution costs. Most retail brokers route to multiple wholesalers and actively monitor their performance, rewarding those offering lower execution costs with more volume. While retail investors benefit from the current landscape across all stocks, those trading small stocks benefit the most.