Intended and unintended consequences of dark and block trading regulation

Angelo Aspris, Daniel Rigney, P. Joakim Westerholm, Sean Foley

Research output: Chapter in Book/Report/Conference proceedingConference abstract


We exploit regulatory changes to the block trade definition in the Australian equities market to determine if the block threshold affects the level of pre-trade block and non-block trading activity. Using a one off change to the block trade thresholds and 12 quarterly revisions to block trades tiers as sources of exogenous variation we can draw casual inference on whether block trade and dark trades are substitutes or complements. Our results provide empirical evidence that (1) block sized thresholds constrain trading in the upstairs markets and (2) block and dark trading are complementary.
Original languageEnglish
Title of host publicationAuckland Finance Meeting 2017
Subtitle of host publicationProgramme
Place of PublicationAuckland
PublisherAuckland University of Technology
Number of pages1
Publication statusPublished - 2017
Externally publishedYes
Event7th Auckland Finance Meeting - The Auckland Centre for Financial Research at the Faculty of Business and Law, Auckland University of Technology, Queenstown, New Zealand
Duration: 18 Dec 201720 Dec 2017
Conference number: 7th


Conference7th Auckland Finance Meeting
Abbreviated titleACFR
Country/TerritoryNew Zealand
Internet address


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