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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: TFF who wrote (8114)3/31/2000 9:58:00 PM
From: LPS5  Read Replies (2) of 12617
 
My quick, admittedly superficial analysis of NASDAQ's embrace of electronic auction market technology via Primex indicates that it serves two purposes. First, because both the dealer and auction markets have their particular benefits and detractions (and because few would argue that technology doesn't make every system a little faster and/or cheaper) NASDAQ could, by integrating the new system, offer either a choice of - or an optimally hybridized - trading scheme to traders and investors.

Tangientally related to this is the potential PR value of offering both manner of trading systems to potential issuers, some of whom would previously have been swayed to listing on an exchange. Not to mention the fact that integrating a point-of-trade function into an already (and by definition) widespread market seems to me, at first glance, to be a far simpler undertaking than integrating OTC functionality into a centrally located market structure.

Perhaps this will speed the NYSE's move toward acquiring or building their own ECN.

LPS5
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