Ebook: Electronic vs. Floor Based Trading
- Tags: Finance /Banking, Science general
- Series: Zicklin School of Business Financial Markets Conference Series Baruch College
- Year: 2006
- Publisher: Springer US
- Edition: 1
- Language: English
- pdf
Historically, specialists and other floor brokers, in direct contact on the trading floor, have been at the heart of operations at the national U.S. equity exchanges. At the other end of the spectrum, electronic trading platforms have characterized most other equity markets globally for many years. Recent developments at the NYSE have moved in this direction, but fundamental questions effecting market quality remain. Can the unique services offered by the floor be provided as effectively in an electronic environment? Which environment would institutional and retail traders each find most suitable to their special needs? Which environment offers better price and quantity discovery? These are some of the questions that are addressed in this book, while providing perspective on the future direction that exchange market structure is likely to follow in the coming years.
Historically, specialists and other floor brokers, in direct contact on the trading floor, have been at the heart of operations at the national U.S. equity exchanges. At the other end of the spectrum, electronic trading platforms have characterized most other equity markets globally for many years. Recent developments at the NYSE have moved in this direction, but fundamental questions effecting market quality remain. Can the unique services offered by the floor be provided as effectively in an electronic environment? Which environment would institutional and retail traders each find most suitable to their special needs? Which environment offers better price and quantity discovery? These are some of the questions that are addressed in this book, while providing perspective on the future direction that exchange market structure is likely to follow in the coming years.
Historically, specialists and other floor brokers, in direct contact on the trading floor, have been at the heart of operations at the national U.S. equity exchanges. At the other end of the spectrum, electronic trading platforms have characterized most other equity markets globally for many years. Recent developments at the NYSE have moved in this direction, but fundamental questions effecting market quality remain. Can the unique services offered by the floor be provided as effectively in an electronic environment? Which environment would institutional and retail traders each find most suitable to their special needs? Which environment offers better price and quantity discovery? These are some of the questions that are addressed in this book, while providing perspective on the future direction that exchange market structure is likely to follow in the coming years.
Content:
Front Matter....Pages i-xvi
Getting the Trades Made....Pages 1-16
Increasing Returns by Decreasing Trading Costs....Pages 17-25
Operations of a Floor Broker....Pages 27-47
Achieving Best Execution Through Market Structure Development....Pages 49-66
Electronic Trading....Pages 67-87
Hybrid Markets....Pages 89-109
Electronic and Floor-Based Trading: The Nyse Hybrid Market....Pages 111-120
The Economic Value of a Trading Floor: Evidence from the American Stock Exchange....Pages 121-151
Back Matter....Pages 153-175
Historically, specialists and other floor brokers, in direct contact on the trading floor, have been at the heart of operations at the national U.S. equity exchanges. At the other end of the spectrum, electronic trading platforms have characterized most other equity markets globally for many years. Recent developments at the NYSE have moved in this direction, but fundamental questions effecting market quality remain. Can the unique services offered by the floor be provided as effectively in an electronic environment? Which environment would institutional and retail traders each find most suitable to their special needs? Which environment offers better price and quantity discovery? These are some of the questions that are addressed in this book, while providing perspective on the future direction that exchange market structure is likely to follow in the coming years.
Content:
Front Matter....Pages i-xvi
Getting the Trades Made....Pages 1-16
Increasing Returns by Decreasing Trading Costs....Pages 17-25
Operations of a Floor Broker....Pages 27-47
Achieving Best Execution Through Market Structure Development....Pages 49-66
Electronic Trading....Pages 67-87
Hybrid Markets....Pages 89-109
Electronic and Floor-Based Trading: The Nyse Hybrid Market....Pages 111-120
The Economic Value of a Trading Floor: Evidence from the American Stock Exchange....Pages 121-151
Back Matter....Pages 153-175
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