The Impact of Technology on the Trading of Securities: The Emerging Global Market and the Implications for Regulation
![handle is hein.journals/jmlr24 and id is 313 raw text is: ARTICLES
THE IMPACT OF TECHNOLOGY ON THE
TRADING OF SECURITIES: THE
EMERGING GLOBAL MARKET AND
THE IMPLICATIONS FOR
REGULATION
LEWIS D. SOLOMON*
LOUISE CORSO**
Computers have revolutionized the trading of securities and
the stock market is currently in the midst of a dynamic transforma-
tion. It is clear that the market of the future will not resemble the
markets of the past.'
Technology has made it possible for information regarding
stock prices to be sent all over the world in seconds. Presently,
computers route orders and execute small trades directly from the
brokerage firm's terminal to the exchange. Computers now link to-
gether various stock exchanges, a practice which is helping to create
a single global market for the trading of securities. The continuing
improvements in technology will make it possible to execute trades
globally by electronic trading systems.
The rapid technological advances, working with other eco-
nomic and political factors such as the breaking down of trade bar-
riers in Europe in 1992, are propelling changes that will soon result
* Professor of Law, George Washington University National Law Center;
B.A. 1963, Cornell University; J.D. 1966, Yale University.
** Division of Enforcement, Securities and Exchange Commission (The
Securities and Exchange Commission, as a matter of policy, disclaims responsi-
bility for any private publication or statement by any of its employees. The
views expressed herein are those of the authors and do not necessarily reflect
the views of the Commission or its staff.). A.B. 1973, Wilson College; M.A. 1977,
University of Notre Dame; J.D. 1990, George Washington University National
Law Center.
1. Anyone looking down from heaven at our exchange in the year 1800
would have seen coffeehouses. By the beginning of the 20th century, a trading
floor could be seen. In the year 2000, the exchange will be an electronic net-
work, connecting terminals all over the globe. Macklin, A Primer on NAS-
DAQ: The Market of the Future, in THE NASDAQ HANDBOOK: THE STOCK
MARKET OF TOMORROW - TODAY 32 (1987) (quoting George Hayter, Director of
Information Services at the London Stock Exchange) [hereinafter NASDAQ
HANDBOOK].](ViewImageLocal?handle=hein.journals/jmlr24&div=17&collection=&method=preview&ext=.png&size=3)
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The Impact of Technology on the Trading of Securities: The Emerging Global Market and the Implications for Regulation
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