Comment added to article: NYSE Technology Threatens Survival of Floor Traders

Comment from Wayne Wagner, July 29, 2009 — I share Vince Farina's nostalgia. Visiting the NYSE floor or the Chicago Futures pits in their heyday was an absolute thrill, but those days are gone.

The NYSE and other exchanges now need to prove themselves in a hotly competitive market for securities exchange services. Whereas eliminating unnecessary intermediaries has demonstrably benefited investors by significantly reducing trading costs, the parties being disintermediated are finding Schumpeter’s creative destruction unpleasant, certainly in the short term.

However, investors find themselves needing new methodologies and communications to efficiently access the markets. Brokers, service providers, and exchanges that meet these needs are positioned to dominate the provision of exchange services.

The king is dead; long live the king!