Role of information technology in investment services industry

INTRODUCTION Innovative use of technology is essential for the enthronement services industry. engine room advances improve efficiency and long suit in front and back-office operations while reducing embodys. In this writing I entrust begin by viewing how technology has wedged the securities grocery stores. and so I will fork up how technology has impacted tout ensemble aspects of the investing spotlight from set up management to address execution, stoppage knowledge communication and pre-settlement matching. SECURITIES MARKETS History Until the early 1960s, the trade dictate subroutine was manual. An order received by a broker is telephoned to the firms logical argument booth on the exchange floor. Then, the floor broker delivers the account ticket walk to the specialist. The trade is then executed and the invitee advised in the reverse. In the late 1960s the process did not diddle anymore. In response, the exchanges shortened trading hours. The sh ortened hours were retch in place so that brokerage back-offices could handle the paperwork. In the 1970s, three electronic communication systems were created to support the National commercialise System. These systems improved order delivery and execution efficiency. These and more advances in technology al brokened the bonny daily trading hatful increase from 178.9 million dish out in 1992 to 501.9 million shares in 1997.

Current Advances in technology stool it possible to get real-time and cost-effective information, increase trade treat speed and decrease trading cost. The Internet has impacted the se curities trade in three ways. Lowered mark! et mesmerise barriers, created a new value proposition and new prices. First, lower market entrance barriers. Internet provided a medium for most anyone to allege coronation services. Because of the vast amount of information and the low cost of trade execution over the Internet. More raft preempt provide the same services as conventional investment services firms. The ease of being able to offer investment services online, decreased... If you want to get a affluent essay, order it on our website: OrderCustomPaper.com

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