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Electronic Trading Arcades

On August 27th, 2000, with the flick of a switch, the Chicago Board of Trade (CBOT), the world’s oldest futures exchange, launched its new electronic trading site offering futures and options contracts. Electronic trading is growing in popularity and approximately 75-200 electronic trade sites currently exist. Yet, when the computer revolution began, many individuals were misguided into thinking that the computer hardware or box was the significant item. By not licensing its operating software, Apple forced consumers to buy Macintosh boxes if they wanted Macintosh operating software. Thus, Microsoft made billions of dollars by developing and licensing software which anyone could use on any kind of box, while Apple went broke sticking to its “box” mentality. So, too, electronic trading is made or broke by the kind of software traders use that allows them to connect to and trade on systems like the CBOT or New York Stock Exchange (NYSE) or NASDAQ. Whether or not electronic trading will completely supplant open outcry trading in future remains unknown, but many industry experts argue it will “In Europe, electronic trading has already supplanted open outcry, and few doubt the same will happen in the US” (Gogoi 1). However, those who wish to competitively maintain electronic trading Web sites need to utilize technologies that provide such advantages. This analysis will discuss the basics of opening an electronic trading arcade, including the necessary technology as well as the trading and clearing requirements for setup. A conclusion will address the future of electronic trading arcades.

The impact of day trading has been significant on traditional exchanges. Many corporations wonder if it still makes sense to list on well-known exchanges because electronic communications networks (ENCs) perform the task of trading stocks less expensively and more speedily than traditional methods of trading. Using cyberspace technol...

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Electronic Trading Arcades. (1969, December 31). In LotsofEssays.com. Retrieved 02:50, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1685396.html