Technology And The Stock Market Essay, Research Paper
The intent of this research paper is to turn out that engineering has been good for the stock market. Thankss to engineering, there are now more bargainers than of all time because of the easiness of trading online with houses such as Auditrade and Ameritrade. There are besides more stocks that are making good because they are in the engineering field. The New York Stock Exchange and NASDAQ have both benefitted from the recent technological motion.
The NYSE says they are dedicated to keeping the most efficient and technologically advanced market place in the universe. The key to that leading has been the state-of-the-art engineering and systems development. Technology serves to back up and heighten the human opinion at point-of-sale.
NASDAQ, the universe s foremost to the full electronic stock market, started merchandising on February 8th, 1971. Today, it is the fastest turning stock market in the United States. It alo ranks second among the universe s securities in footings of dollar value. By invariably germinating to run into the altering demands of investors and public companies, NASDAQ has achieved more than about any other market, in a shorter period of clip.
Technology has besides helped investors buy stocks in other markets. Markets used to open at standard local times. This would do an American bargainer to kip through the bulk of a Nipponese trading twenty-four hours. With more online and afterhours trading, investors have more entree to markets so that American bargainers can still merchandise Nipponese stocks. This is besides helped by an enlargement of most market times. Afterhours trading is available from most on-line trading houses.
For puting specializers, engineering provides operational capableness for managing more stocks and greatly increased volumes of trading. Specialists can follow extra beginnings of market information, and multiple trading and post-trade maps, all on one screen at work or at place. They are besides given interfaces to upstairs risk-management systems. They besides have flexiblity to rearrange their physical workspaces, terminuss and functional activities.
Floor agents are helped with supports for an industry-wide attempt to compare buy/sell contracts for truth shortly after the trade. They are besides given flexibleness in set uping working relationships utilizing the new wireless voice headsets and handheld information terminuss. The ability to supply new and enhanced information services to their trading desks and institutional clients is provided. They have a comprehensive order-management system, that systematizes and tracks all outstanding orders.
Technology gives a market s member organisations flexibleness in finding how to staff their trading floor operations every bit good as flexiblity in utilizing that market s provided systems, webs and terminuss or interfacing their ain engineering. They are given confidence that their market will hold the systems capacity and trading floor operations to manage day-to-day trading and in one million millions of portions. Member organisations get faster order handling and associated studies to their clients, along with speedier and enhanced market information. They besides have a regulative environment, which assures member organiztions that their clients, big and little, can merchandise with assurance. Technology besides allows lower costs, despite increasing volumes and enhanced merchandises.
Companies listed on the NYSE are provided with an electronic nexus so they may analyse day-to-day trading in their stock, and compare market public presentation during assorted clip periods. The engineering besides supports the visibleness of operations and information, and regulated auction-market processs, which listed companies expect from their primary market in support of their capital-raising activities and their stockholder services.
Institutions get enhanced information flow from the trading floor, utilizing new radio engineerings, as to pre-opening state of affairss, deepness of market, and indicants of buy/sell involvement by other big bargainers. Besides supported are the just, orderly, and profoundly liquid markets which establishments require in order to apportion the financess they have under direction whether puting orders in size for indiv
idual stocks ( block orders ) or put to deathing plans ( a series of up to 500 orders normally related to an index ) .
For institutional investors, engineering gives information on timely trades and quotation marks and makes them available through member houses, market informations services, overseas telegram broadcasts and intelligence media. They besides are provided with a really effectual manner of managing smaller orders, giving them communications precedence and full auction market engagement for monetary value betterment yet turning the mean market order around in 22 seconds. Price continuitity and narrow citation spreads, which are under changeless market surveillence and a regulative environment which enforces trading regulations designed to protect little investors are besides supported.
There are many different sorts of equipment used on the stock market. One of these machines is SuperDot, an electronic order-routing system through which member houses of the NYSE transmit market and bound orders straight to the trading station where the stock is traded. After the order has been completed in the auction market, a study of executing is returned straight to the member-firm office over the same electronic circuit that brought the order to the trading floor. SuperDot can presently treat about 2.5 billion portions per twenty-four hours.
Another piece of machinery is the Broker Booth Support System. The BBSS is a state-of-the-art order-management system that enables houses to rapidly and expeditiously procedure and pull off their orders. BBSS allows houses to selectively route orders electronically to either the trading station or the booths on the trading floor. BBSS supports the undermentioned agent maps: recieving orders, come ining orders, rerouting orders, publishing studies, research, and sing other services via terminal Windowss.
The operating expense crowd show is America s foremost commercial application of large-scale, high-definition, flat-screen plasma engineering. It shows trades and quotation marks for each stock. The show besides shows viing national market system quotes. Clear, legible information is displayed at broad sing angles. Full colour and picture capablenesss are besides provided.
The Hospital Arm Monitor is suspended for convenient screening by specializers. Multiple information beginnings that are displayed include point-of-sale books, overhead crowd shows, market collage and assorted seller services. The list of information beginnings is traveling to go on spread outing.
The Point-of-sale Display Book is a tool that greatly increases the specialist s volume managing and treating capablenesss. Using powerful workstation engineering, this database sysem maintains the bound order book for which the specializer has bureau duty, aids in the recording and airing of trades and citation alterations, and facilitates the research of orders. All of this serves to extinguish paperwork and processing orders.
The Consolidated Tape System is an incorporate, worldwide describing system of monetary value and volume informations for trades in listed securities in all domestic markets in which the securities are traded. The Hand-Held is a nomadic, handheld device that enables agents to recieve orders, disseminate studies, and send market looks in both informations and image format, from anyplace on the trading floor.
Intermarket Trading System is a show that was installed in 1978 associating all major U.S. exchanges. ITS allows NYSE and NASDAQ specializers and agents to compare the monetary value of a security traded on multiple exchanges in order to acquire the best monetary value for the investor.
These are the machines that have helped greatly increase the purchasing and merchandising of stocks over the past few old ages. There are great advantages to trading today over the state of affairs that past bargainers had. The biggest donees of this new engineering are investors themselves. They have all twenty-four hours to merchandise alternatively of merchandising merely during market hours, they have more stocks to take from, and the markets are really high so people are doing a batch of money.
In decision, I have discovered that the research I have done on this undertaking has revealed what I originally thought to be true. That is that the stock market has greatly benefitted from the recent progresss in engineerings.