{"id":8399,"date":"2020-07-09T09:15:06","date_gmt":"2020-07-09T08:15:06","guid":{"rendered":"http:\/\/www.economicsobservatory.com\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19"},"modified":"2020-07-09T09:15:06","modified_gmt":"2020-07-09T08:15:06","slug":"grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19","status":"publish","type":"ongoing-research","link":"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19","title":{"rendered":"Grey rhinos in financial markets and venue selection: the case of Covid-19"},"content":{"rendered":"<p>We investigate the effects of the Covid-19-induced shock in financial markets on aggregate venue selection\/market share and market quality. We find that the shock is linked with an economically significant loss of market share by dark pools to lit exchanges. In line with theory, the loss appears linked to an increase in lit market volatility and a search for immediacy by traders active in stocks with dark trading access. The market quality implications of the reduction in dark trading are mixed: while it tempers Covid-19-linked liquidity decline in the lit market, it exacerbates the loss of informational efficiency<\/p>\n<p><\/p>\n","protected":false},"template":"","categories":[],"frequency":[],"type_of_data":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Grey rhinos in financial markets and venue selection: the case of Covid-19 - Economics Observatory<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Grey rhinos in financial markets and venue selection: the case of Covid-19 - Economics Observatory\" \/>\n<meta property=\"og:description\" content=\"We investigate the effects of the Covid-19-induced shock in financial markets on aggregate venue selection\/market share and market quality. We find that the shock is linked with an economically significant loss of market share by dark pools to lit exchanges. In line with theory, the loss appears linked to an increase in lit market volatility [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19\" \/>\n<meta property=\"og:site_name\" content=\"Economics Observatory\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@econobservatory\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19\",\"name\":\"Grey rhinos in financial markets and venue selection: the case of Covid-19 - Economics Observatory\",\"isPartOf\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#website\"},\"datePublished\":\"2020-07-09T08:15:06+00:00\",\"dateModified\":\"2020-07-09T08:15:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.economicsobservatory.com\/test\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Grey rhinos in financial markets and venue selection: the case of Covid-19\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#website\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/\",\"name\":\"Economics Observatory\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.economicsobservatory.com\/test\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#organization\",\"name\":\"Economics Observatory\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.economicsobservatory.com\/wp-content\/uploads\/2021\/06\/Logo-for-Twitter.png\",\"contentUrl\":\"https:\/\/www.economicsobservatory.com\/wp-content\/uploads\/2021\/06\/Logo-for-Twitter.png\",\"width\":540,\"height\":392,\"caption\":\"Economics Observatory\"},\"image\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/twitter.com\/econobservatory\",\"https:\/\/www.linkedin.com\/company\/economics-observatory\/\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Grey rhinos in financial markets and venue selection: the case of Covid-19 - Economics Observatory","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/grey-rhinos-in-financial-markets-and-venue-selection-the-case-of-covid-19","og_locale":"en_GB","og_type":"article","og_title":"Grey rhinos in financial markets and venue selection: the case of Covid-19 - Economics Observatory","og_description":"We investigate the effects of the Covid-19-induced shock in financial markets on aggregate venue selection\/market share and market quality. 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