I wonder if OSTK"s lawsuit vs. the Prime Brokers is enhanced by them complaining about the practice they say was used against them? Take a little trip back in time. <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/xbEH2OZiZW0&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/xbEH2OZiZW0&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
Actually the whole trading highway needs to transform.... The SEC needs to be eliminated. The current trading highway needs to be replaced.... .......................................................... The trading highway needs to be more like the internet itself.....Efficient capital is essential to the globalization process and wealth distribution by merit. A highway whereby the going freight would be 20 cents or less per 100 shares....which could be coupled with any qualifying bank or financial company....totally unencumbered by any IB or other specified firm.... Anyone in the world who desires a true universal account should be able to have one....whereby at their personal choice they could change the ownership label on cds....bonds....stocks....or any other qualified instrument....in the currency of their choice.... This is not a venue whereby dark pools ...."turning public product into private product" can exist.....This is a singular venue....Made available to anyone who has a computer and some capital.... Next comes the true information WIKI type highway which does not confer opinions on others ....but just posts the facts about the instruments on the highway.... Then comes management units....Opinions are just management decisions about future prospects....There would be "management shares" that could be posted on the highway.... The third and fourth largest stock exchanges in the world have already proven the base case....With just a handful of people have quickly taken the reins of market share....rendering the older models as antiques.... A true financial highway is the only way that globalization can become a viable process..... All product made available to the public must trade on the highway.... Also each security could have levered long and short shares...ie ETFs.....and those who would want more leverage would operate through firms offering traders services via firm capital.... At the end of the day.....prices will dominate....
Folks are starting to get it. The only way we solve these problems is to admit to them, and tackle the source. You may think you're enlightened. You may think you have a handle on what this is all about. You will all be shocked beyond anything you can comprehend up to this point.
Let's simplify this further.... Lets say there was a total of 100 symbols.... In previous years there was no electronic highway and all sorts of inefficiencies took place.... ..................................................... Exchanging the labels on a number of symbols....could cost $300 for a few hundred shares....now a few hundred shares costs a few cents....and could go down more.... Sending ownership papers....who actually does this now.... Price discovery each day in an orderly manner....both information and location price origination were very loose.... .................................................... Today only a singular electronic highway is needed....since these are public products....they should be traded on a public electronic exchange....this should be mandated.... With just a handful of employees two exchanges have become the third and fourth in the world....in a very short period of time....computer banks can be located anywhere.... The cost of a name transfer should not exceed 20 cents per 100 shares.... The big firms are trying to turn a big disadvantage into a big advantage.... A % change is only valid if one can realize it.... If a day trader has to unload 400 shares at a specific price....their odds of realizing that price are many times higher than a firm that needs the price .....but has 1 million shares it needs to unload.... It is not appropriate for a private firm to form its own hidden exchange....It is trading a public product....A public product should trade by mandate on an open visible electronic exchange.... ............................................................ Furthermore the exchange should be worldwide and all publicly traded products should be priced directly on the exchange....in the currency of exchange.... Most populations are fed up with trying to outguess political econo-gadgetry.... and need a venue in the exchange products of choice....in the currency of choice....If they get a bad set of politicos ....then they simply make their financial adjustments with a few mouse clicks.... Let the egotistical gasbags have at it all they want....like a Hollywood play.... ....................................................... Also there should be no confusion between accurate core information and individual opinion.... A Wiki information format would be publicly available.... Opinions could actually be represented as shares....which would also serve as an accurate form of judgement as to its historical record..... ................................................... The bottom line is that direct access exchanges have an incredibly bright and promising future...as these structural changes play out.... And because of permanent efficiency needs ....will happen.... Efficiency sells.... In any language.... The SEC is just a good roladexed job creator for higher pay at a later date....and has become a part of a Fascist system.... The SEC has no place in a properly designed worldwide exchange.... There will be a newer and far more advanced gatekeeper....