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Magazine Cites UI Finance Professors' Work

A floor broker using discretion (by taking a customer order out of his pocket for execution in relatively small pieces when conditions are right) can be thought of as a micro market timer, as a human algorithm, as a bearer of dark liquidity. In so doing, the floor broker offers a value-added service. A 2004 Journal of Business paper, "The Economic Value of a Trading Floor," produced with PUNEET HANDA and ASHISH TIWARI, associate professors of finance at the University of Iowa, presents evidence that floor broker intermediation on the American Stock Exchange results in better market timing and lower impact costs.

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