And Mr Grasso is adamant that it is the floor, which hosts the exchange's trading specialists, who make markets in particular shares, that makes the NYSE the most efficient trading system in the world albeit one, he stresses, that is augmented by billions of dollars' worth of new technology.So what does he think were the NYSE's mistakes?
The European exchanges all face challenges from new pan-European trading systems and from investors demanding cheaper and more efficient trading across the Continent in the wake of the adoption last year of a European single currency.
When costs of settlement are private information, a merger of vertical silos cannot be designed to always ensure efficient trading and settlement after the merger.
Taken together, these findings motivate us to examine whether investors disagree on the valuation implications of linguistic tone and whether small investors are subject to differential, and notably less efficient, trading in response to the linguistic tone in these corporate announcements.
Nevertheless, note that a basic assumption of our approach is the complete interchangeability of resource goods in order to allow efficient trading by a double auction scheme.
To be sure, Professor Ruenzi conceded, those disadvantages may be more than counterbalanced by the benefits of family membership, like access to a bigger research department and more efficient trading desks.
Information, crucial to efficient trading, is scanty.
All this is splendid news for investors: they will benefit from cheaper, more efficient trading.The Dutch experiment started over a year ago when unhappy Dutch brokers approached the LSE.
"There is a big difference, in short, between an efficient trading system and an efficient national market system," Mr. Levitt said.
To be sure, there may be counterbalancing benefits, such as access to a bigger research department and more efficient trading desks.
