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Ron Augustine wrote:
> Great idea in theory, but it raises the same problem as attempting to
> abolish the IRS.
>
> Who's going to tell the millions of tax accountants, tax attorneys, and IRS
> agents to go find a new job flipping burgers.
This isn't quite the same thing though. Many floor traders *could* do the same
job they do now, only within a different venue. Not too long ago, a physical
exchange was necessary, as technology did not allow for direct interaction among
players. This is no longer the case at all now. Of course, much of the agency
involved in trading will be eliminated, due to the nature of this much more
efficient mechanism. This cannot be a problem, though - since exchanges exist
fundamentally to efficiently serve traders by facilitating the buying and
selling of financial instruments, and to block this efficiency in favor of
catering to those few who have an economic interest in an outmoded status quo
would be corrupt and a breach of the exchange's mandate. This would be a case
of the inmates running the asylum.
Regards,
A.J.
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