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Re: Trading in Cyberspace Exchange
Chapman, Spira & Carson - Disscusion

From: Robert A. Spira
Date: 5/2/99
Time: 7:53:34 AM
Remote User:


The International Securities Exchange is said by its organizers to be the first fully electronic securities marketplace in the United States. Apparently, this does not include the rest of the world and in cyberspace it really does not much matter whether the market place is on the moon or in New York City. We note that the SEC has not as yet given their blessing but if everyone there is doing the right things, that is only a formality. One wonders how disputes are settled in this manless environement. What about delivery of securities and payments? Well, we will see how it works. I hopt the kid that got unto E-bay for a couple of mil, doesn't try his hand at the stock market using this vehicle. Just raising a few issues although I believe that all the bases will be covered by the time the get going. Robert A. Spira for Chapman

ISE will be the first U.S. market to combine the efficiencies of electronic trading with the time tested advantages of trading in an open auction market environment. An auction market is one in which open bids and offers meet directly on some facility, with transaction prices thus determined by the then current level of supply and demand. This results in a superior market making environment rather than a dealer market, where prices are determined by dealers buying and selling for their own inventory of securities. ISE's philosophy is that the investing public should be given the highest priority. Thus, this patent pending trading system has at its core the following:

Customer orders will always be executed before professional orders

The price at which a customer order is filled will be the best price available from all options markets; ISE will be the only fully electronic market in the world that incorporates quotes from other exchanges so that customers trade at the best price

A complete, detailed electronic record (audit trail) of all transactions, time stamped to the nearest 1/100 of a second, will be immediately available for surveillance purposes.

Last changed: March 17, 2000