AI Snips
Chapters
Transcript
Episode notes
History of Electronic Trading
- Electronic trading has existed since the late 60s.
- However, regulations initially favored human interaction, delaying widespread electronic adoption.
Exchange Ecosystem
- Exchanges are central marketplaces for trading securities, where participants advertise prices and transact.
- Various entities interact with exchanges, including clearing firms, other exchanges, and market data providers.
Early Exchange Challenges
- Early exchange systems like Island faced fairness challenges when multiple clients shared a machine.
- Serial message sending and connection order manipulation created inefficiencies and unfair advantages.