NEW YORK — while executives were a deal that finishing to a German rival New York Stock Exchange, the NYSE separate, smaller fought a battle with three dozen competitors. The price was the right to deliver Coca-Cola shares to an investor, 400 of them wanted to.
About 8 billion shares trade every day in the United States, seems hardly worth mentioning this sale save tell for the result: lost the NYSE.
New York Exchange loses much in these days. The symbol of American capitalism hopes, the combination with other Exchange folder their fallen fortunes will reverse. But it won't be easy.
Credit card reform is ConsumerMan: a year later interest rise but penalties have drastically decreased. The law to work seems to balance. Electric cars? Americans want more muscle of your career: you have a work spouse? Life Inc.: There's no excuse not to now your tax fileCompetition is so sharp, stock orders, now treat, the difference between victory and defeat of often pennies matter – the coke trade, a few a penny hundredth of.
Since, if you wanted to Coke buy stock, decades hearing went to a middleman in a trader jacket building in lower Manhattan - the shot are on the floor of the NYSE who constantly seen on TV, if the market has a great day. He would yell and wave his arms until it ready to sell someone found.
Now these intermediaries are almost all way, replaced the drone of computers in Office Parks nationwide.
Order was Monday, if lime buy brokerage in Manhattan, 400 shares of Coke at the request of the associated press. 11.00: 29 Johan Sandblom, a lime merchant, his computer cursor in a "buy" icon on its screen moved and clicked.
Building on the Hudson River in Jersey City, n.j travelled 150 millionths of a second, the order two and a half miles on one white stone. Destination: $7,000 computer server not greater than a DVD player that buy the juggle and orders for more than a million every second can sell shares.
A few hundredths of a second after the coke request arrived, has the server offers three dozen exchanges and other trading venues to sell shares. One was based in Lenexa, Kansas, others in Birmingham, Alabama, and a third in Bala Cynwyd, Pennsylvania many of you did not exist 10 years ago. The server, which then provides ranked prices after deduction of rebates or discounts for bulk purchase.
It was the time from Sandblom's click of the cursor to the results no longer than a blink.
The lowest price was from Kansas contender, BATS Exchange. Co-founder of the shares offered 2005 by a former Executive for a health care Diagnostics company, FLEDERMAUSE sell for $63.05 apiece, less a discount of 27 a hundredth of a penny.
The NYSE chance no. It wanted to 12 one-hundredth of a cent.
NYSE Euronext which parent company, said stock exchange on Tuesday that it make of Germany's Deutsche Borse acquired world's largest stock exchange operator. The deal would be a powerhouse in options and futures trading, create, which is more profitable than bringing buyers and sellers of stocks.
Story: Deutsche Borse, the New York Stock Exchange seal merger dealIt would the optimized company, staff and technology spending to keep costs low and helps it compete in price with bat and other upstarts to cut.
The battle under the exchange of fractions of pennies is the result of four decades of regulatory changes and innovations. In the 1970's, NASDAQ, the FLEDERMAUSE was your day, making obsolete NYSE intermediaries we buy and sell orders over the phone. The pitch: we can do it faster than the guys on the ground.
In the early 1980s, the phone was displaced by the computer and trades got even faster. Then a series of new rules came beginning in the late 1990s, speed and price more important to win a deal.
Such a rule mandatory quoted share prices in smaller increments. Stock prices used to be quoted in eighth a dollar. Now they are cited more precise decimals. Razor thin became the price differences, rapid-fire jumped computerized firms to gather volatile split penny profits. This so-called high-frequency trading companies of all U.S. stock trading is two-thirds now. And you have more competition between exchanges faster stoked and cheaper.
With some 50 exchanges and trading venues now vying for his customers has the NYSE moved quickly to adjust. It has tapped Act computers, bought other exchanges, including the online Arca and reduces his legendary stock distributors.
"In the old days you had through the crowd, to drive", Thomas Caldwell of Caldwell says financial Toronto, top shareholder of NYSE Euronext. "Now you can Bowl."
Only 35% of the shares of companies on the NYSE listed trade actually there in a typical month 75% six years ago.
Coke is one of NYSE listed companies. It first shares offered to the public on the NYSE in 1919. But, as Monday's deal shows history does not matter in addition to 12 one-hundredth of a penny.
The difference between NYSE and FLEDERMAUSE prices may seem ridiculously small. But the NYSE lost not only the FLEDERMAUSE, but five other exchanges. Anyone could post prices for Coke shares, after rebates within this split penny gap. And add fractions of a penny, multiplied by 8 billion times a day.
Even the winners feel as small vulnerable with the difference between success and failure. On the same day, the FLEDERMAUSE of delivered Coke, a press release about it had expanded shares that put out startup his negotiations to buy a London rivals, so it could better compete, also.
Copyright 2011 associated press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed are.
0 коммент.:
Post a Comment