Even though the NYSE's stock has plummeted 77% from its highs in 2006, traders on the floor are becoming popular again, as investors want actual humans to handle trades during these troubling times. The Financial Times has an article on the topic today that is definitely worth reading. As long as everything runs right, computers and automated trading are great. The process is faster and more cost-efficient. Unfortunately, the system works until it doesn't work, and when it breaks, the effects can be disastrous. Hopefully the most recent market turmoil is a wake up call that human to human interaction is still essential in the marketplace.
Subscribe to Bespoke Premium to receive more in-depth research from Bespoke.
Here's another article on electronic trading.
The market has really changed as a result of its popularity.
http://www.greenfaucet.com/traders-talk/the-evils-of-electronic-trading/93417
Posted by: Frank | October 29, 2008 at 12:04 PM