Is this a business model for an independent Net?
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NETWORK = STOCK EXCHANGE?
Issue: Ecommerce
Chicago-based Archipelago announced yesterday that it will apply
with the US Securities and Exchange Commission by August 1 to
convert its electronic trading network into a self-regulated stock
exchange. Electronic communications networks (ECNs) like
Archipelago electronically match stock sellers and buyers and tout
their ability to make trades more quickly and cheaply than
traditional stock exchanges by cutting out a middleman, Zajac
writes. 20% of trades on the Nasdaq stock market, for example,
are executed by ECNs. But systems like Archipelago have not
been able to get their prices published in national quote systems
shared by stock exchanges: "It seems to us that the only way to
break through this barrier is to become an exchange," said
Archipelago CEO Gerald Putnam.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Andrew Zajac]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-
9907280135,FF.html)
