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> People pay Nasdaq to make their trades reliable and safe. How much of the value people see in Nasdaq is the technical systems that execute the trades? I'd a

by lsc 11y ago

> People pay Nasdaq to make their trades reliable and safe. How much of the value people see in Nasdaq is the technical systems that execute the trades? I'd argue that the technical systems that reliably execute trades are important; Nasdaq would fail if they didn't work reliably, but having a reliable system to execute trades doesn't make it easy to setup a competitor to the Nasdaq, you know what I mean? The technical systems are necessary but not sufficient; the rest of what you need to set up a stock exchange is absolutely huge. I'll make the analogy of e-bay. I think most people would agree with my assertion that the technical challenges of building a competitor to ebay are trivial when compared with the effort that would be required to get the buyers and sellers to leave ebay and join your new platform.

jzwinck 11y ago
> How much of the value people see in Nasdaq is the technical systems that execute the trades? Quite a bit. They do a good-sized business selling their technical systems to other markets (mostly outside the US). An example from the opposite side of the globe: http://www.world-exchanges.org/news-views/bursa-malaysia-selected-nasdaq-omxs-x-stream-inet-power-its-trading-platform http://www.world-exchanges.org/news-views/bursa-malaysia-sel... . Of course, NASDAQ has plenty of other assets, such as its ownership of not just one but three of the national exchange registrations (it bought BX and PHLX). Not to mention all the US companies which are listed on NASDAQ (there may be a bunch of places to trade them, but NASDAQ is "home" to Apple, Facebook, etc.).
- lsc 11y ago
  >They do a good-sized business selling their technical systems to other markets that's a lot like saying that because IBM and HP, ITC and TCS do a lot of contracting of the outsourced worker variety, their value is in the technical people they hire. The value is in the connections, the name, the fact that large companies will pay a lot for my time, if they are buying that time from a company like IBM or HP, ITC or TCS, while they won't pay anything for the exact same time sold direct through prgmr.com. The value is that relationship and reputation. The value is that if you hire those companies and things go south, your boss won't blame you for taking a risk on an unknown brand.

by lsc 11y ago

jzwinck 11y ago

> How much of the value people see in Nasdaq is the technical systems that execute the trades? Quite a bit. They do a good-sized business selling their technical systems to other markets (mostly outside the US). An example from the opposite side of the globe: http://www.world-exchanges.org/news-views/bursa-malaysia-selected-nasdaq-omxs-x-stream-inet-power-its-trading-platform http://www.world-exchanges.org/news-views/bursa-malaysia-sel... . Of course, NASDAQ has plenty of other assets, such as its ownership of not just one but three of the national exchange registrations (it bought BX and PHLX). Not to mention all the US companies which are listed on NASDAQ (there may be a bunch of places to trade them, but NASDAQ is "home" to Apple, Facebook, etc.).

lsc 11y ago
>They do a good-sized business selling their technical systems to other markets that's a lot like saying that because IBM and HP, ITC and TCS do a lot of contracting of the outsourced worker variety, their value is in the technical people they hire. The value is in the connections, the name, the fact that large companies will pay a lot for my time, if they are buying that time from a company like IBM or HP, ITC or TCS, while they won't pay anything for the exact same time sold direct through prgmr.com. The value is that relationship and reputation. The value is that if you hire those companies and things go south, your boss won't blame you for taking a risk on an unknown brand.