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will be resolved as more traders and investors become more comfortable with trading outside normal market hours. |
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And it doesn't stop there. By the time you read this, the NASDAQ market will have extended afternoon hours just to cater to online investors. |
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If that's not enough, the NASDAQ itself is planning to sell shares of itself to its members, and perhaps later, to the public. What the NASDAQ does will be followed by the New York Stock Exchangebecause nobody wants to be left out of the game. Nobody wants to lose the orders that will be put through by individual investors sitting at their own computers. The reason for lengthening trading hours by the exchanges is not only as a convenience to online traders. It's mainly because of the pressure not to lose business to independent electronic trading networks, discussed later in this chapter. |
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In this country, we are heading for nothing less than one large electronic stock exchange that will operate around the clock. This may very well mean that the New York Stock Exchange becomes entirely electronics, and the floor trading system as we know it will cease to exist. As the following news items indicate, this will ultimately turn into one gigantic worldwide exchange. Every new computer sold will include built-in software that immediately gives you access to this worldwide exchange. Just as we may now connect to web sites all over the world, the world's markets will offer us the same mouse-click-away convenience. It's all coming right around the bend. |
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Item (The New York Times, November 5,1999, p. C2): |
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On November 5, 1999, NASDAQ announced plans to open an Internet-based exchange that will list shares of companies based in Europe. |
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This is part of its effort to build a global stock exchange that offers nonstop securities trading in all parts of the world. They also announced plans to set up a virtual stock exchange in Japan as well. NASDAQ officials hope to begin operations in Europe and Japan in the final three months of 2000. |
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Item (Los Angeles Times, November 6, 1999, p. C1): |
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Under pressure from upstart computerized markets, the New York Stock Exchange plans to break with centuries of tradition by creating its own electronic trading system, Chairman Richard Grasso announced Friday. The proposed system would allow trades of 1000 or fewer shares to be executed |
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