Technology And The Stock Market Essay Research — страница 2
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situations, depth of market, and indications of buy/sell interest by other large traders. Also supported are the fair, orderly, and deeply liquid markets which institutions require in order to allocate the funds they have under management whether placing orders in size for individual stocks (block orders) or executing programs (a series of up to 500 orders usually related to an index). For institutional investors, technology gives information on timely trades and quotes and makes them available through member firms, market data services, cable broadcasts and news media. They also are provided with a very effective way of handling smaller orders, giving them communications priority and full auction market participation for price improvement yet turning the average market order around in 22 seconds. Price continuitity and narrow quotation spreads, which are under constant market surveillence and a regulatory environment which enforces trading rules designed to protect small investors are also supported. There are many different kinds of equipment used on the stock market. One of these machines is SuperDot, an electronic order-routing system through which member firms of the NYSE transmit market and limit orders directly to the trading post where the stock is traded. After the order has been completed in the auction market, a report of execution is returned directly to the member-firm office over the same electronic circuit that brought the order to the trading floor. SuperDot can currently process about 2.5 billion shares per day. Another piece of machinery is the Broker Booth Support System. The BBSS is a state-of-the-art order-management system that enables firms to quickly and efficiently process and manage their orders. BBSS allows firms to selectively route orders electronically to either the trading post or the booths on the trading floor. BBSS supports the following broker functions: recieving orders, entering orders, rerouting orders, issuing reports, research, and viewing other services via terminal windows . The overhead crowd display is America s first commercial application of large-scale, high-definition, flat-screen plasma technology. It shows trades and quotes for each stock. The display also shows competing national market system quotes. Clear, legible information is displayed at wide viewing angles. Full color and video capabilities are also provided. The Hospital Arm Monitor is suspended for convenient viewing by specialists. Multiple data sources that are displayed include point-of-sale books, overhead crowd displays, market montage and various vendor services. The list of information sources is going to continue expanding. The Point-of-Sale Display Book is a tool that greatly increases the specialist s volume handling and processing capabilities. Using powerful workstation technology, this database sysem maintains the limit order book for which the specialist has agency responsibility, assists in the recording and dissemination of trades and quotation changes, and facilitates the research of orders. All of this serves to eliminate paperwork and processing orders. The Consolidated Tape System is an integrated, worldwide reporting system of price and volume data for trades in listed securities in all domestic markets in which the securities are traded. The Hand-Held is a mobile, hand-held device that enables brokers to recieve orders, disseminate reports, and send market looks in both data and image format, from anywhere on the trading floor. Intermarket Trading System is a display that was installed in 1978 linking all major U.S. exchanges. ITS allows NYSE and NASDAQ specialists and brokers to compare the price of a security traded on multiple exchanges in order to get the best price for the investor. These are the machines that have helped greatly increase the buying and selling of stocks over the past few years. There are great advantages to trading today over the situation that past traders had. The biggest beneficiaries of this new technology are investors themselves. They have all day to trade instead of trading only during market hours, they have more stocks to choose from, and the markets are very high so people are making a lot of money. In conclusion, I have discovered that the research I have done on this project has revealed what I originally thought to be true. That is that the stock market has greatly benefitted from the recent advances in technologies.