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futures contract will be listed in every trading market, and the computer program will be seeking the best price in the best market. All executions will be instantaneous with the push of a button. Few will use conventional brokers for execution of orders. Brokers usually don't know anything except what the firm's research and sales departments want them to sell in the first place. Brokers in the future will probably be financial guarantors of your trade because strangers will not want to trade with an unknown entity over a computer terminal. Your broker will furnish research analysis and information relating to price quotes, access to the market, and automatic order execution. In fact, tomorrow looks exactly like DAET does today. Brokerage houses will exist to provide tax information in form and substance acceptable to the IRS. |
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Electronic markets are now international and worldwide. A proper DAET system can reach anywhere in the world a phone can reach. The next stage will be fewer and faster remote routers on a private business Internet so that anyone in the world can trade on any market as expeditiously as locals. Non-English-speaking people may have English language problems, but they can certainly understand the international language of numbers. |
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According to at least one professor, those same SEC Order Handling Rules that created the ECNs would also allow for decimal pricing. Decimal pricing is pricing in pennies. Any investor or DAET trader would much prefer decimal pricing to sub-eighth increments. Let's face it. The stock market is one of the few major markets artificially priced in sub-eighths (such as thirty-seconds, sixteenths, eighths, or quarters of a dollar). Fractional sub-eighth pricing is unnatural in the United States. Our economy doesn't normally tolerate prices expressed in fractions rather than in decimals. You would be dumbfounded if every item in the supermarket was priced in sub-quarter-of-a-dollar price gradations. Passing price changes to the customer highlights the problem. When your food store raises the price of milk, it increases the price in pennies and not by a quarter or an eighth of a dollar. Consumers would have a devil of a time with unwieldy and miscellaneous fractions. |
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