Facts on Technology Disruption in the Securities
It is important to highlight the fact that financial services have felt the most impact of disruptive technologies and this disruption has still not yet been fully understood by academics and policy makers so much that both parties lack a clear theory of the phenomenon and lack a coherent set of regulatory prescriptions. Technology has disrupted market practices and even the assumption that securities regulation is done on a basis whereby there are stable gatekeepers like broker-dealers, exchanges and clearance systems.
It is important to note that one of the ways that technology has disrupted the financial services is the introduction of automated financial services such that human beings have now been replaced by computers when it comes to executing trades. Computers have also taken up major decisions such as what securities should be bought and sold by performing highly complicated statistical analyses based on certain algorithms. Another important issue is the aspect of computerized trading that have replaced the dissemination of financial information through ticker tape and telephone communication, which was much slower and more expensive. Read about more systems related to economic diplomacy.
The demerit of this traditional system is that this traditional system was primitive and it forced intermediaries to be inches from one another on exchanges or they resorted to shouting quick orders to one another over the phone. It is a known fact that this system was inefficient and decisions on the pricing of orders were based on guesswork and brokers lacked correct information from research or statistical departments thus they resorted to focusing only on incoming orders to generate guesses about the market because the orders were not widely distributed. Specialists and market makers took advantage of these inefficiencies to create high bid-ask spreads so that they could generate abnormal profits. You have to understand how international financial law works.
It is a known fact that automation began in the mid-1970s and was driven in part by the Security Exchange Council because during this time advances in computer processing allowed new forms of trading and connectivity to increase among trading professionals. An amazing fact to state is that the world's first electronic stock market was created in 1966 when NASDAQ was created and it acknowledged that the system could display orders from a previously inaccessible network of dealers. It is important to acknowledge that after such a feat, other stock markets began to follow suit and the New York Stock Exchange introduced its Designated Order Turnaround system, which automatically routed smaller market orders directly to specialists. Later on the system was developed to be able to link financial firm members to trading professionals located on trading posts on the trading floor and had a bulletin board for institutional investors.
It is vital to note that this is just one of the ways that technology has revolutionized financial markets. Read related discussions at http://peopleof.oureverydaylife.com/hours-can-telemarketers-call-5594.html.