Innovations have been made in trading. This paper will tell the story of electronic trading and some innovations that have occurred throughout electronic trading. In past years NASDAQ trading was always done face-to face. Exchanges around the world such as London, Tokyo, and Frankfurt were some of the first exchanges that moved into trading electronically. Global electronic order routing, broad dissemination of quote and trading information, and some new types of trading systems are possible because of innovations in computing and communications. These new innovations make electronic trading possible and to get rid of face-to-face trading. Innovations have made it possible for new competitors to enter and also makes cost of new trading systems to lower, which in turn makes the cost of every thing lower a bit. Electronic trading has become more popular internationally and some stocks are only dealing with electronic trading. There are rules that regulate trade execution mechanism also regulating the prices and quotes of data that is released. There are a lot of different and diverse market structures. A couple of these structures are a continuous limit order book, a single-price auction and a trading system with passive pricing. With the electronic limit order book, people keep posting bids and offers for other people to see. These books do not always have the person’s personal information posted on it. It does not post the time that it would still be good. People will start a trade with an order that has been there on the order book or could be place a brand new one. If a bid or offer is present and a person makes a price and it is the same price or a higher price the trade happens. The Securities and Exchange Commission takes and controls the biggest electronic trading system which is the “Electronic Communications Network as electronic trading systems that will automatically match buy and sell orders at certain prices.” The Securities and Exchange Commission says that Electronic Communications Network’s are integral to the modern securities markets. The most used Electronic Communications Network is almost like the electronic limit order book. There are a couple of Electronic Communications Network’s that the NASDAQ system looks at and they are: Atttain, Archipelago, Brass Utility, Bloomberg Tradebook, Instinet, Nextrade, and Track. The lower trading cost have been because of the matching systems and automated communication by the Electronic Communications Network. Electronic Communications Network stops using humans as dealers and matches buyers and sellers; this will make profits smaller electronic communication network technology is cutting edge allows faster trading compared to market centers trading system. The median time for an electronic communication network would be two or three seconds, compared to order through an exchange which is 20 seconds or more. The electronic communication network will show much better price information than the traditional market does. With the information the electronic communication network will let people look at the market conditions and also optimize some trading strategies. So that the electronic communication network can show anonymity the electronic communication network puts up the price and the size of the order. Staying anonymous is very important to the people because enemies could try and steal their strategies. Another reason for the anonymity is the enemies will try and trade before the first people can make their trades. This is defined as front running. Front running is a big problem and the Securities and Exchange Commission looks at front running bad. Electronic communication network finds a match the trade will automatically happen. Intinet and Island, some of the biggest electronic communication networks, will match over 70 percent of their order volume on the inside. Then if a match cannot be found on the inside the electronic communication network will offer…
Impact of Technology On Business
Q) What is the impact of technology on business? Explain with the suitable example of financial service sector.
Technology affects almost every aspect of our lives. Just look around you and you'll see how wired we are. Thanks to the Internet, virtually anything you desire can be delivered to your door in a matter of days. You can even trade stocks or file taxes online. But as much as our personal lives have changed, the business world has revolutionized…
New York Stock Exchange also known as NYSE along with the National Association of Securities Dealers Automated Quotation System that also known as NASDAQ will be compared and contrasted. Due to the stock exchange’s sheer size, laws have been proposed and passed such as the Public Company Accounting and Investor Protection Act of 2002 and the Sarbanes-Oxley Act of 2002. Becoming knowledgeable within finance can help individuals who obtain a career within the studies of finance and business. Both the…
agreement between Lord Weinstock of GEC and Ernest Harrison of Racal Electronics. The agreement gave Racal access to GEC’s military radio technology. In 1982 the company, which at this time was called Racal-Milicom Ltd., set about bidding for and being awarded the second sale of the UK mobile network licence.
Vodafone was launched on January 1st 1985 under the new name of Racal-Vodafone (Holdings) Ltd.. In December 1986 Racal Electronics bought out all the minority shareholders of Vodafone for £110 million…
Introduction to Electronic Commerce
* Electronic Commerce: Into the Third Wave
* Electronic Commerce and Electronic Business
* Electronic Commerce (e-commerce)
* Shopping on Web, business trading with other businesses, and internal processes that companies use to support their buying, selling, hiring, planning, and other activities
* Business activities conducted using electronic data transmission over the internet/web
* Electronic Business (e-business)…
What is the analysis of the situation described in the case?
The tri-vestiture of Bell Labs and AT&T’s network systems development and manufacturing business, created Lucent Technologies Inc. in 1994. Lucent Technologies designs, manufactures, and service public and private networks, communication systems and software, data networking business telephone systems, and micro-electronic equipment. While formerly Bell Labs, provides all the research and development functions for Lucent Technologies…
developed solely because managers in these organizations waned to do things faster, but to help gain and sustain some competitive advantage.
Firms ability to do something better, faster, cheaper, or uniquely when compared with rival firms in the market.
A way of thinking in which plans are made to accomplish specific goals.
Why Information Systems Matter??
“IT Doesn’t Matter”
Argued that information technology becomes more persuasive
Becomes more standardized and ubiquitous…
to identify and interpret potential trends.
a. Social Force: Demographic shifts, Cultural Changes
b. Economic Force: Macroeconomic condition, Consumer income
c. Technical Force: Changing technology, Technology’s impact on customer value, Electronic business technologies
d. Regulatory Force: Laws protecting competition, Law affecting marketing mix action, self-regulation
e. Competitive Force: Alternative forms of competition, Small businesses
2. Controllable Force & Uncontrollable Forces…
upstream dealer. The retailer orders beer from the wholesaler, the wholesaler from the distributor, and the distributor from the factory. The factory decide how much to manufacture, rather than how much to order from a supplier. During the game, communication between us is limited. Inventory and backorder levels usually differ drastically from week to week.
Our objective is slightly simple, each of the us has to meet the terms inward bound orders of beer by placing orders with the next upstream party…
Mizuho Investors Security analyst maintained that a complete and thorough assessment of potential impact on Sony’s future business would be more difficult to quantify (as cited in Osawa, 2011). The analyst argued that if data security concerns damage Sony’s brand image, this could undermine the company’s efforts to establish a business model that links gadgets to an online network of games, movies and music. Therefore, according to the author “...it could take months for the security woes to settle…
if they know how it functions in the economy. Although rapid population growth has been known to depress economic prosperity by reducing the amount of capital each worker has, it also has its advantages with its contribution to technology, in the business environment. Economists have since suggested that world population growth is the key to technological progress and economic prosperity. The reasoning behind this theory is that, “if there are more people, then there are more scientist, inventors…