RT Journal Article SR Electronic T1 When Transactions Went High-Tech JF The Journal of Trading FD Institutional Investor Journals SP 90 OP 103 DO 10.3905/jot.2006.654305 VO 1 IS 4 A1 Nikolaj Hesselholt Munck YR 2006 UL https://pm-research.com/content/1/4/90.abstract AB This study aims at comparing the costs of trading for an institutional investor at the larger stock exchanges of Europe and the Northern countries. Based on figures for the last 8 years we find that, even though the cost levels have varied significantly both over time as well as among exchanges, the cost levels among exchanges have been clustering the last couple of years. Further analyses of the cost figures for 2004 indicate that the direct costs of trading are approximately identical across the major European markets. Derived from both an empirical and a statistical analysis we find that the direct cost levels have been declining significantly the last years, with up to 35 percent. Furthermore, we identify the system turnover as a statistical significant explanatory variable for both the indirect and the direct costs, hence for the total cost. This relationship has not been pointed out previously. According to our results, one would expect both the implicit and explicit costs to depreciate as the system activity appreciates. This link serves as weak evidence of the fact that coalescing trading systems might imply lower future trading costsTOPICS: Exchanges/markets/clearinghouses, big data/machine learning