The debate over electronic bidding reaches Washington: who should pay for maintaining old-line stock exchanges?

Article Abstract:

Steven Wunsch operates Wunsch Auction Systems, which is an electronic stock-trading network. Wunsch Auction Systems offers investors a way to save money on their trades. Commissions can be a penny a share, which compares with 3 cents to 6 cents a share if the trade is done through a traditional exchange. Established exchanges have complained to the Securities and Exchange Commission (SEC), saying that the large exchanges subsidize Wunsch's alternative arrangement. The Wunsch auction, they say, takes advantage of the market that is made and maintained by the large exchanges, and the Wunsch auction then competes directly against traditional exchanges. Some fear that larger, sophisticated investors might bypass traditional exchanges. Congress is concerned because there is a possibility that smaller traders will be left at the traditional exchanges, paying high commissions to support trading activities of institutional investors who use electronic exchanges such as Wunsch's.

Government Regulation, Wunsch Auction Systems Inc.

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Big board plans trading at night, using computers in transactions (New York Stock Exchange)

Article Abstract:

The New York Stock Exchange expects to use electronic trading systems to begin trading at night in 1991. Auctions are expected to be conducted at 8 P.M., midnight and 5 A.M. Each stock will be traded only once at each auction, and all the trades combined at whatever price can be agreed upon. The new proposal is an attempt to retrieve an estimated 15 million to 20 million of shares of New York Stock Exchange shares that are traded each day outside the exchange's hours. The new proposal needs to be approved by the Securities Exchange Commission (SEC), but clearance seems likely.

Services, New York Stock Exchange Inc.

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3 Years After Enron, Resistance to New Rules Grows

Article Abstract:

William H. Donaldson, chairman of the Securities and Exchange Commission, has been more effective than any of his predecessors in changing the laws governing stock trading. But his proposal to pass a trade-through rule has been criticized by other members of the commission.

United States, Legal issues & crime, Strategy & planning, Government regulation (cont), Government regulation, Management dynamics, Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Securities & Commodities Regulatn, Legal/Government Regulation, Trading Regulations, Management, Planning, Political aspects, Company business management, Securities law, Company business planning, Securities trading, Aims and objectives, Donaldson, William H.

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