Nasdaq Market Makers Antitrust Litigation
Encyclopedia
Nasdaq Market-Makers Antitrust Litigation - class-action lawsuit initiated in 1996 alleging collusion amongst Wall Street
traders. The class action alleged that NASDAQ
market-makers set and maintained wide spreads pursuant to an industry-wide conspiracy. Litigation took 3.5 years and was eventually settled for $1 billion, which was the largest antitrust settlement up to that point.
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
traders. The class action alleged that NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
market-makers set and maintained wide spreads pursuant to an industry-wide conspiracy. Litigation took 3.5 years and was eventually settled for $1 billion, which was the largest antitrust settlement up to that point.
See also
- Electronic Communication NetworkElectronic Communication NetworkAn electronic communication network is the term used in financial circles for a type of computer system that facilitates trading of financial products outside of stock exchanges. The primary products that are traded on ECNs are stocks and currencies. The first ECN, Instinet, was created in 1969...
- List of class action lawsuits