Information Technology in the Major International Financial Markets

45 Pages Posted: 15 Oct 2008

See all articles by Bruce W. Weber

Bruce W. Weber

City University of New York (CUNY) - Baruch College

Date Written: April 1993

Abstract

Financial markets perform a seemingly simple function: facilitating the transferof securities into cash, or cash into securities. Closer inspection of the activitiesand the information intensity of a trading floor or a dealing room reveals greatcomplexity. Information technology (IT) plays a crucial role in supporting makeractivities, and no trader today could operate without real-time data services, andcomputer-based analytical tools. Market information - about prices, interestrates, transactions, investor supply and demand, and company and economic news- is at the heart of any trading operation. Consequently, the major internationalmarkets from Tokyo to Zurich are making increased use of information technology.While IT is capable of making physical marketplaces and trading floorsobsolete, no consensus is emerging on the design of an integrated global financialmarket, and many technological and regulatory issues remain unsolved. Multiple,fragmented markets may be a consequence of the lack of coordination. Thischapter highlights the technologies that are revolutionizing international financialmarkets. The future direction of financial markets will be charted by automationand systems, and IT'S influence on banks, securities firms, and the marketsthemselves will continue to be a subject of debate and controversy.

Suggested Citation

Weber, Bruce W., Information Technology in the Major International Financial Markets (April 1993). NYU Working Paper No. 2451/14248, Available at SSRN: https://ssrn.com/abstract=1284869

Bruce W. Weber (Contact Author)

City University of New York (CUNY) - Baruch College

17 Lexington Avenue
New York, NY 10010
United States

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