Plausibly Exogenous [1897] - Dark Trading (04/13/2025)

LHS Variable
Cost of trade

RHS Variable
Dark trading

Source of Exogenous Variation
“Tick Size Pilot” in October of 2016, which increased quoting and trading increments from $0.01 to $0.05 for randomly selected samples of small- and mid-capitalization stocks

- Farley, Kelley, and Puckett (2025), “Dark trading volume and market quality: A natural experiment”