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For example, corporate databases are sharing information to streamline insurance claims, process retail orders or arrange car financing.
The two firms handle about half of all retail orders, so the total losses are expected to be well over $100 million.
Only the hardest retail orders to handle — what the exchanges refer to as "toxic order flow" — make it to the exchanges.
"Our product orders did go up," Ms. Rogers said, "our social media comments on Facebook and Twitter increased tenfold, which did trickle down to retail orders, but it's hard to say just how many".
The NYSE Euronext plan would offer to segment retail orders into a sequestered area where registered firms could offer to trade at a price slightly better than the listed price.
Writer interviews owner Matt Andresen, 29... Island, which is eighty-five per cent owned by Datek Online Holdings, deals mainly in small retail orders and is, at this point, the nation's second-largest electronic communications network or E.C.N.
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And municipals have become easier to buy, with many state and local issuers insisting on a special retail order period to give individuals first crack at bonds.
Nasdaq has not unveiled its plan but people with direct knowledge said it would look somewhat similar and involve a mini-auction any time a retail order came in.
Indeed, in 1967, he predicted something like the Internet, writing: "We will probably see a national information-computer-utility system, with tens of thousands of terminals in homes and offices 'hooked' into giant central computers providing library and information services, retail ordering and billing services, and the like".
With trades regularly below $20, e-brokerages attracted enormous retail order flow that was subsequently fed into ECN systems, providing instant liquidity.
So we believe that there's a lot of economic benefit being derived from retail order flow today from the participants on the other side of the market, and that ends up being inferior executions for the retail investor.
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