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Thierry Foucault awarded by Analysis Group for the Best Paper on Financial Institutions and Markets

26 June 2009

Thierry Foucault, Professor of Finance at HEC and his co-authors Ohad Kadan and Eugene Kandel received the “Analysis Group Award for the Best Paper on Financial Institutions and Markets” for their paper "Liquidity Cycles and Make/Take Fees in Electronic Markets" presented at the Western Finance Association conference in San Diego on May 17-20, 2009.

Their article studies how algorithmic trading (i.e., the automation of order submission in financial markets) affects the liquidity of financial markets and trading platforms' business model. It delineates conditions under which trading platforms should subsidize market-makers to increase their trading rate. It thereby offers insights on the maker/taker fee business model which is now widely used in Europe and US equity markets, but which has yet been little studied.

Ohad Kadan is Associate Professor of Finance at the Washington University in St Louis – Olin Business School, USA.

Eugene Kandel is Professor of Economics from the Hebrew University of Jerusalem, Israel.


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