Internalization and stock price clustering: Finnish evidence

G. Geoffrey Booth, Juha Pekka Kallunki, Ji-chai Lin, Teppo Martikainen

Research output: Journal article publicationJournal articleAcademic researchpeer-review

13 Citations (Scopus)


Internalization, the practice of brokers executing trades in-house, is a significant phenomenon in the Helsinki Stock Exchange. During the continuous trading session, 97.5% upstairs market trades are internalized. The corresponding figure for after-hours upstairs market trades is 73.1%. The prices of internalized trades are somewhat more clustered than the prices of other trades during the continuous trading session, but they are not more clustered than the prices of negotiated trades in the after-hours upstairs market. This suggests that Finnish brokers do not use a more discrete set of prices for internalized trades than for other upstairs trades.
Original languageEnglish
Pages (from-to)737-751
Number of pages15
JournalJournal of International Money and Finance
Issue number5
Publication statusPublished - 1 Oct 2000
Externally publishedYes


  • Clustering
  • Helsinki stock exchange
  • Internalization
  • Preference trading

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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