March 31, 2000
Single, Computerized 'Book'
For Stocks Appears Less Likely
BY JUDITH BURNS
Dow Jones Newswires
WASHINGTON--A proposal to create a single, computerized "book" for U.S. stocks, showing customers' pending orders, is looking less and less likely.
"The CLOB is dead" is the summary repeated by several securities-industry executives who spoke about the central limit order book, or CLOB, on condition they not be identified. Other executives said it would be premature to say the plan is dead, but believe support for it is diminishing in the face of vocal opposition.
Federal Reserve Board Chairman Alan Greenspan, for example, will likely oppose a government-sanctioned CLOB in coming testimony to the Senate Banking Committee, on grounds that it would be bad for U.S. markets, several executives predicted. A Federal Reserve spokeswoman declined to comment on Mr. Greenspan's testimony. Mr. Greenpan's views, however important, aren't the final word on the subject, since regulation of U.S. securities markets rests with the SEC, not the Fed. |
