Life after the Big Board Goes Electronic

Posted: 9 Oct 2006

See all articles by Michael S. Pagano

Michael S. Pagano

Villanova University - Villanova School of Business

Robert A. Schwartz

Baruch College - CUNY

Paul Davis

Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF)

Abstract

The NYSE's Hybrid Market will be a floor-based facility (a slow market) combined with an electronic platform (a fast market). Technological advances, regulatory pressure, and competition have forced the exchange to introduce an electronic platform, but its success will not be known for some time. This article addresses some of the broad issues involved. The Big Board is considered as a network that provides price and quantity discovery. The article raises several questions about the integration of fast- and slow-market components and presents evidence that in one European electronic exchange, roughly half the euro value of trades does not go through the electronic order book.

Keywords: Financial Markets, Market Structure and Organizations, Investment Industry, Future Directions and Sources of Change

Suggested Citation

Pagano, Michael S. and Schwartz, Robert A. and Davis, Paul, Life after the Big Board Goes Electronic. Financial Analysts Journal, Vol. 62, No. 5, pp. 14-20, October 2006. Available at SSRN: https://ssrn.com/abstract=935133

Michael S. Pagano (Contact Author)

Villanova University - Villanova School of Business ( email )

800 Lancaster Avenue
Villanova, PA 19085-1678
United States
(610) 519-4389 (Phone)

HOME PAGE: http://www90.homepage.villanova.edu/michael.pagano

Robert A. Schwartz

Baruch College - CUNY ( email )

Zicklin School of Business
17 Lexington Avenue
New York, NY 10010
United States
646-312-3467 (Phone)
646-312-3530 (Fax)

Paul Davis

Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF) ( email )

730 Third Avenue
New York, NY 10017-3206
United States

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