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  • Cited by 7
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    This article has been cited by the following publications. This list is generated based on data provided by CrossRef.

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  • Journal of Financial and Quantitative Analysis, Volume 47, Issue 2
  • April 2012, pp. 415-435

Clean Sweep: Informed Trading through Intermarket Sweep Orders

  • Sugato Chakravarty (a1), Pankaj Jain (a2), James Upson (a3) and Robert Wood (a2)
  • DOI:
  • Published online: 18 January 2012

An intermarket sweep order (ISO) is a limit order that automatically executes in a designated market center even if another market center is publishing a better quotation. An investor submitting an ISO must satisfy order protection rules by concurrently submitting orders to the markets with better prices. We find that ISOs represent 46% of trades and 41% of volume in our sample. ISO trades have a significantly larger information share despite their small trade size relative to non-ISO trades. Post trade return analysis suggests that informed institutions are the main users of ISO trades.

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  • ISSN: 0022-1090
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