TCP/IP. The New York binary trading options forums Times. Increased transparency Electronic trading has meant that the markets are less opaque. It's easier to find out the price of securities when that information is flowing around the world electronically. Exclusive for FX Week Corporate users only. 5 This allowed access to a variety of financial markets such as treasuries, foreign exchange and commodities. This has translated to lower costs for investors. 4 Larger institutional clients, however, will generally place electronic orders via proprietary electronic trading platforms such as Bloomberg Terminal, Reuters 3000 Xtra, Thomson Reuters Eikon, BondsPro, Thomson TradeWeb or CanDeal (which connect institutional clients to several dealers or using their brokers' proprietary software. If you have one already please sign. Electronic trading is in contrast to older floor trading and phone trading and has a number of advantages, but glitches and cancelled trades do still occur. One of the earliest examples of widespread electronic trading was on Globex, the.
Greater competition While electronic trading hasn't necessarily lowered the cost of entry to the financial services industry, it has removed barriers within the industry and had a globalisation-style competition effect. Retrieved Ian Salisbury and Geoffrey Rogow (September 25, 2008). US treasury bonds the inter-dealer market substitutes for the exchange. If you dont have a FX Week account, please register for a trial. There are more buyers and sellers) which increases the efficiency of the markets. For stock trading, the process of connecting counterparties through electronic trading is supported by the Financial Information eXchange (FIX) Protocol. This is where dealers trade directly with one another or through inter-dealer brokers (i.e. The goal is to reduce the incremental cost of trades as close to zero as possible, so that increased trading volumes don't lead to significantly increased costs.