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Trump Won't Kill America, Bitcoin Will

In this shared piece, author Brett Cenkus argues that nation-states will cease to exist not because of a who, but a what - and it's already here.

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June 30, 2001

Barriers to ECNs

By Editorial Staff

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Borrelli: Yes. Tradebook is gaining access to the CQS and the CTA through Philadelphia, which is a participant in the plans.

Traders: What is your solution?

Borrelli: The SEC needs to completely overhaul the facilities of the National Market System. The SEC should provide for the creation of one or more for-profit organizations to take over their operations. ECNs need to be able to directly disseminate their quotes into a central system, rather than being dependent on competitors.

Traders: How would that help?

Borrelli: If everyone had equal access to the NMS, speed and quality of execution would play a bigger role. If one party had superior technology they would gain more of an advantage than they have now. Another marketplace might gain an advantage because it works better in volatile markets. Also, the current system, which requires the exchanges and Nasdaq to jointly operate the NMS facilities, simply doesn't work.

Traders: Right now the quoting and trading facilities for listed stocks are separate from those for Nasdaq stocks. Your plan combines both into one organization?

Borrelli: Yes. Nasdaq would be treated as one of the exchanges putting quotes and trades into the system. This makes a lot of sense, especially now that so many stocks are being traded away from the markets on which they are listed.

Traders: So, in effect, your plan would put ECNs on equal footing with Nasdaq and the listed exchanges?

Borrelli: Yes. People would compete on the basis of technology to win market share. ECNs would not be constrained by using the facilities of one of the other markets.

Traders: This organization would operate an order routing service along the lines of the ITS?

Borrelli: I think it should. It could fulfill the functions of the ITS, but more efficiently.

Traders: Thanks, Mark.