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When they intervene, they can capture a trading spread that should go to their customers instead of them.
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That means more profit for investment banks compared with stocks, whose trading spreads have narrowed for decades.
But after 2001, when American exchanges began pricing shares in decimals instead of fractions, the trading spreads tightened and profits plummeted.
The measures to be used, stock by stock, include trading spreads -- the difference between the buying and selling prices -- and speed of execution.
Yet market abuse, which the FSA has defined as including insider trading, spreading false information, or deliberately distorting share prices, is usually pursued by prosecuting offenders, not restricting types of activity.
As the availability and ease of computer-based trading spreads, Wall Street's commission-based revenue, once the mainstay of the industry, is likely to come under even more pressure than it already has.
One area of concern is Nasdaq's trading spreads.
Trading spreads are declining across the institutional products.
We measure liquidity by looking at trading spreads and trading volume.
It doesn't charge commissions, but makes its money on trading spreads.
With their low overhead, the new marketmakers have helped narrow trading spreads.
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