http://www.nytimes.com/2009/10/15/b...ess&adxnnlx=1255611791-xyyf6nm71sd7B/10MUFGdw The BATS model is the future of exchanges.... Because of one reason...."EFFICIENCY"... Computer banks and a handful of people could locate where it pleases them most.... Interesting concept.... A truly efficient....de-fragmented.... worldwide direct access electronic exchange.... Hopefully in Switzerland....where "actual efficiency" could actually occur.... Enough of the US/SEC/big corp. legal largess poly-moron Harvard Queens....
But the "incumbent" exchanges & their locales will fight it tooth & nail against it. There's just too much money against it and most of the current infrastructure would be quite pricey to move around, considering all the HFT & algo boxes would all want to relocate nearby too. Unless the "rules" would state no co-location & everybody has a fair shot in terms of distance. Present system is broken & favors the big players unfairly.
................................................. What is really needed is .... No acct. min/max... Size limitations per issue.... first come, first served.... all out in the open....all trades on the defragged exchange.... simple SS rule...no uptick...no locate....electronic tag vs float.... ie margin 4:1 intraday/ON commissions....nonexistant...20 cents per 100 units... Electronic surveillance regulator....simple Actually have fair play regulated by those who actually know how.... All securities...all asset classes... All public products must discover price on THE PUBLIC EXCHANGE.... This is cake...Technology here today.... And locate where legal largess and red tape are effective but minimized.... And far away from the polycons.... An exchange is just an electronic time stamp program... ie electronic phone call billing program....
The problem is, wherever this new exchange goes, big money will be involved with the financing to build it, move it there, etc, etc. That same "big money" will then turn around & demand some concession from the exchange where it'll be favored in some way and the same bullshit you have now will just move there. It's human nature to fuck up a good/honest thing.
................................................ Definitely a cycle.... Will buy some time... For the next phase.... Why not ? .............................................. The next phase is going to be a more worldwide option.... Every country puts symbols on the same defragmented exchange... This is next....