From: Max More (max@maxmore.com)
Date: Tue Dec 01 1998 - 13:17:03 MST
At 08:10 PM 11/30/98 -0800, you wrote:
>
>Currently, it costs in excess of $1 million to get a seat in (become a
>member of) the NYSE. At those prices, members don't want their control to
>have any dilution via digital automation.
But the price of a seat on the exchange has been dropping greatly recently,
precisely because of computerization.
>If you (completely) automate the NYSE, you kick out the inside traders and
>the enormous commissions earned by broderage houses. Without the element of
>greed, no stock exchange exists. Greed drives the whole machine. How can you
>automate or computerize greed? --J. R.
Competition. If one exchange computerizes, speeds up transactions, and
reduces bid-ask spreads, it puts pressure on the others to follow.
Max
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<more@extropy.org> or <max@maxmore.com>
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