The new market: computers bypass WallStreet middlemen and stir controversy; big traders like speed, cost of off-exchange dealing but little guy may suffer; brokers worry about jobs
Article Abstract:
New computer technology threatens the jobs of middlemen in financial markets as it becomes less costly and more effective. For example, business that traditionally would be routed through a stock-trading specialist can now be managed via an off-exchange system that brings buyers and sellers together electronically. Banks, securities companies and money management firms are using private networks, and the result is that investors are brought into direct contact with one another. Computerized systems are fast and inexpensive, but such networks do not favor small investors. Some observers fear that an absence of regulation will breed manipulation or fraud as transactions shift away from organized exchanges. Another advantage of computerized networks is their ability to operate around the clock.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Program trading growing overseas, Big Board says
Article Abstract:
The New York Stock Exchange (NYSE) released a report showing program trading is increasing in overseas markets. From Nov 6 to Nov 10, 1989, 26.9 percent of al program trades occurred overseas. Between Nov 13 and Nov 17, overseas program trading accounted for 32.9 percent of the total. Program traders said the recent restrictions placed on them on the NYSE are making them move to the London stock market. The report also claimed overall program trading is down and that Charles Schwab and Co made enough trades recently to fit the definition of a program trader. The weekly program trading report is part of NYSE's initiatives to reduce market volatility.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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