Resumen
The article focuses on rapid advances in computing and telecommunication technologies, particularly the Internet, which profoundly changed dynamics of financial markets. More people are trading online through the Web instead of using full-service brokerages. Investors can now trade stocks, access real-time market information and conduct investment research in ways they could not dream of just a decade ago. The overall process of trading in financial markets, which includes order entry by investors, order verification and routing by brokerage firms and finally, execution and settlement through various markets, online trading has only replaced telephones with the Web and provided a universal interface for individual investors to participate in the financial markets. The value of Internet technology cannot be fully realized unless it can streamline all the interrelated processes in the marketplace. There are a lot of challenging issues, ranging from market fragmentation and information transparency to new payment and settlement procedures.