J.R.Molloy@shasta.com ("Zenarchy") writes:
>
>-From: Max More <max@maxmore.com>
>>Competition. If one exchange computerizes, speeds up transactions, and
>>reduces bid-ask spreads, it puts pressure on the others to follow.
>
>I forgot that the NYSE has to compete with other exchanges. But investors
>still have to go to a particular exchange to trade a particular stock, don't
Large institutional investors can choose between the NYSE, Instinet, Quantex, Posit, and a couple of others. Small investors rarely have much choice, and usually can't measure the quality of actual executions prices well enough to shop around.
>they? (I don't play the market, so I wouldn't know.) Does the fact that the
>NYSE holds, or has exclusive right to trade, many premium blue chip stocks
>explain why it has managed to resist computerized trading? Or do the traders
>themselves, and the brokerage houses, make these decisions? Who owns the
I suspect the specialists have much to lose if computerization eliminates their current role, and the benefits to others are less clear. Humans can usually accomplish the same thing as computers would.
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