Is Market Fragmentation Harming Market Quality?

Is Market Fragmentation Harming Market Quality?
Professors Maureen O’Hara and Mao Ye of Cornell University find that “market fragmentation generally reduces transactions costs and increases execution speeds. Fragmentation does increase short-term volatility, but prices are more efficient in that they are closer to being a random walk. Our results that fragmentation does not appear to harm market quality have important implications for regulatory policy.”