Technology and the stock market

The tech driven market

-Cutting edge technology has always played an important role in the stock market.
- The latest communication, analysis and ordering tools and programs have always been sought out by
traders to shorten the time between initiating and closing a trade.
- The telegraph, the telephone, stock exchange algorithms and automated trading have gradually led to
more and more trading activity becoming automated and governed by machinery.
- Currently, most trades are automated algorithms and parameters automated to buy sell or stand
handle millions of transactions by the minute, with trading limits built in automatically.

Brief History:
-13
th
century Belgian and French stock exchanges used scribes and couriers to transmit stock prices.
-1860s Chalk boards and runners were used to relay stock prices from the exchange to brokers
-1863 Stock Telegraph Edward A. Calahan creates the stock ticker.
-1940 The Trans-Lux Jet display shows last minute trading prices continuously, revolutionizing
communication by 1960, 3000 pieces of the wall-mounted display were installed.
-late 1950s- Quotron a desktop stock information device with keypad input allowed the user to select
the stocks presented.
- 1961 - Ultronic Systems networked, live stock prices distributed nationally in the USA the first uses
of computer technology in the stock market. Replaced by the Nasdaq electronic stock information
platform in 1971.
- 1986 The Personal Computer age S&P present PC Plus besides current, past, open and end prices,
the computer could present information about clients, companies and trading summaries.
- 1992 Globex The first international electronic trading system allowed for the tracking and trading
of stocks, bonds, etc. in real time at a global level. Global financial market boundaries are lifted.
1999 Algorithmic trading is allowed by the SEC. By 2000, Trades took seconds to complete. By 2010,
trades took microseconds to complete.
2011 -
http://en.wikipedia.org/wiki/Electronic_trading_platform
http://en.wikipedia.org/wiki/High-frequency_trading
http://en.wikipedia.org/wiki/Algorithmic_trading
http://en.wikipedia.org/wiki/Electronic_trading
http://en.wikipedia.org/wiki/Modeling_and_analysis_of_financial_markets
http://en.wikipedia.org/wiki/Financial_Information_eXchange