12. Electronic Exchanges and Trading: Challenges
As with any innovations, challenges are introduced or exacerbated by electronic exchanges. Greater speed and globalization mean that there is less room for error and problems can instantly spread around the world. For all its advantages, technology is still rather fragile and unreliable. People are still prone to error and bursts of panic. The result can be greater volatility and, sometimes, ad hoc resolutions to glitches in the electronic infrastructure.
Change is never without challenges. The transformation of financial markets has had its share of bumps and hurdles. An emotional attachment to floor-trading has been difficult for the exchanges and the financial community to overcome. ...