Andy Kessler: Make Way for the Virtual Exchange – WSJ.com

Andy Kessler: Make Way for the Virtual Exchange – WSJ.com.

So we need markets. But we barely need humans and traditional exchanges anymore to implement these markets. And certainly not inside a building, as voices now carry to the far reaches of the globe in 300 milliseconds, and even that’s considered too slow. Trading on Wall Street is just plumbing these days. Value is added much further up the food chain. Trades take place on servers in the great data cloud in the sky. A third of trading even takes place in so-called Dark Pools, privately owned servers that match institutional orders without ever revealing the size or price of the order.

This entry was posted in Exchanges and Trading. Bookmark the permalink.