Thursday, November 12, 2009

Bye bye brokerages

The Brazilian stock exchange is now allowing trading without using a brokerage; the trading allowed uses the awesomely cool algorithms that previously were only available through extremely expensive hedge funds. Wow. I'm trying to get my head around this.

Here's a bit of the Bloomberg article:

International algorithmic trading will allow investors to trade using computer programs though UBS without going through a brokerage, Switzerland’s biggest bank said in a press release. Zurich-based UBS began so-called direct market access in Brazil on July 2008, allowing stock traders to complete orders anonymously without going through a brokerage.

1 comment:

kerfuffler said...

I don't understand the implications of this enough to know what to make of it.

If it helps small investors be on more of an equal footing with big investors, then good.

But in general I have always been opposed to the kind of second by second speculative trading that skims the profit off the market. I favor long term investing and wish that our institutions did more to protect that as a way of saving for the future.