الصفحة 1
الصفحة 1
Electronic vs. Floor Based Trading
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.
Coping With Institutional Order Flow
Handling the large orders of institutional participants presents some of the most complex problems for system design. How well are our current systems operating, and how effective are new facilities on the scene? To what extent is market quality impaired for all participants when institutional trading costs are not properly contained? Can institutional order flow be efficiently integrated with the orders of retail customers, or are separate facilities needed? What are the impediments to market structure change, and how might they best be overcome?
A Trading Desk View of Market Quality
"Market quality" is a complex, ambiguous term that means different things to different people. How should it be defined, measured, monitored, and improved? What is the evidence about the current state of our markets? How effective have recent innovations been? How can we better meet investor needs? These are some of the questions that we address in this book, along with a broad range of issues concerning equity market structure, regulation, and the quest for best execution. Throughout, particular attention is given to the perspective of front line participants on the buy-side and sell-side trading desks.
