The New York Stock Exchange and its out moded specialist system: can the Exchange innovate to survive?
Article Abstract:
The New York Stock Exchange (NYSE) employs specialist traders who are responsible for establishing and conducting a market in the securities assigned to them. This anachronistic method is still used by many American stock exchanges, but the specialist system and those exchanges using it have suffered in competition with innovative exchanges. Introduction of competition into the NYSE by reforming it as a for-profit corporation in which current members become shareholders would be a positive stimulus for innovation and competition.
Publication Name: The Journal of Corporation Law
Subject: Law
ISSN: 0360-795X
Year: 1992
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On the business of defending NYSE specialists
Article Abstract:
The responses given by senior New York Stock Exchange (NYSE) officials to an article criticizing the trust-like aspects of the exchange show that the market's leadership is too entrenched and defensive for the good of the stockholders. If reform is not possible, these people, as well as the SEC and Congress, should stand aside ad allow the NYSE to fade away as investors choose more flexible markets. If these people choose to continue to protect the NYSE's unfair practices they run the risk of driving market investment overseas.
Publication Name: The Journal of Corporation Law
Subject: Law
ISSN: 0360-795X
Year: 1992
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A "free market" response to Cochrane et al. and the status quo
Article Abstract:
Statistical analysis of the effects of a specialist's activities on the New York Stock Exchange (NYSE) show that they can directly increase market volatility, regardless of the claims to the contrary often made by NYSE management. The market as it is structured now is unfair to most investors and protects those who least need protecting. If the SEC and NYSE leaders refuse to change with the times, the free market system offered by other exchanges will leave them behind.
Publication Name: The Journal of Corporation Law
Subject: Law
ISSN: 0360-795X
Year: 1992
User Contributions:
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