“…With respect to the benefits, the evidence suggests that dissemination has led to substantial reductions in both trade execution costs and price dispersion (Bessembinder, Maxwell, and Venkataraman (2006), Goldstein, Hotchkiss, and Sirri (2007), Bessembinder and Maxwell (2008), Asquith, Covert, and Pathak (2019)). Prior evidence further suggests that dissemination leads bond prices to incorporate new information more rapidly (Chen and Lu (2017)) and reduces information gaps in the marketplace, thereby increasing investors' reliance on market prices (Badoer and Demiroglu (2019)). These benefits could be reduced, however, by the reduced incentives to collect private information by informed traders (see, for example, Madhavan (1995), Pagano and Roell (1996), and Lewis and Schwert (2021)).…”