Electronic trading and its implications for financial systems

Helen Allen, John Hawkins, Setsuya Sato

Research output: Book/ReportOther

Abstract

The adoption of electronic trading systems has transformed the economic landscape of trading venues and is proving a force for change in market architecture and consequential trading possibilities. “Electronic trading” here refers to trading in wholesale financial markets and focuses on the central feature of electronic trading systems, automation of trade execution. Such systems usually also feature electronic order routing and dissemination of trade
information and may link through to clearing and settlement. Electronic trading both removes geographical restraints and allows continuous multilateral interaction (whereas telephone trading allows only the former and floor trading only the latter). It allows much higher volumes of trades to be handled, and in customised ways that until recently would have been technically impossible or
prohibitively expensive. This paper considers areas where these enabling effects have been particularly important in wholesale financial markets and how they raise wider, policy implications.
Original languageEnglish
Place of PublicationBasel, Switzerland
PublisherBank for International Settlements
Number of pages23
Volume7
ISBN (Print)929131630X
Publication statusPublished - 1 Nov 2001
Externally publishedYes

Publication series

NameBIS Papers
PublisherBank for International Settlements
No.7
ISSN (Print)1609-0381

Fingerprint

Electronic trading
Financial system
Financial markets
Trading systems
Telephone
Routing
Interaction
Automation
Economics
Dissemination
Policy implications

Cite this

Allen, H., Hawkins, J., & Sato, S. (2001). Electronic trading and its implications for financial systems. (BIS Papers; No. 7). Basel, Switzerland: Bank for International Settlements.
Allen, Helen ; Hawkins, John ; Sato, Setsuya. / Electronic trading and its implications for financial systems. Basel, Switzerland : Bank for International Settlements, 2001. 23 p. (BIS Papers; 7).
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Allen, H, Hawkins, J & Sato, S 2001, Electronic trading and its implications for financial systems. BIS Papers, no. 7, vol. 7, Bank for International Settlements, Basel, Switzerland.

Electronic trading and its implications for financial systems. / Allen, Helen; Hawkins, John; Sato, Setsuya.

Basel, Switzerland : Bank for International Settlements, 2001. 23 p. (BIS Papers; No. 7).

Research output: Book/ReportOther

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Allen H, Hawkins J, Sato S. Electronic trading and its implications for financial systems. Basel, Switzerland: Bank for International Settlements, 2001. 23 p. (BIS Papers; 7).