Nerds on Wall Street: Math, Machines, and Wired Markets

Chapter 1. An Illustrated History of Wired Markets

Progress might have been all right once, but it has gone on too long.

—Ogden Nash

This chapter is based on a number of ever-evolving dinner and lunch talks I have given over many years, all called "Nerds on Wall Street" irrespective of their actual subject. Many financial conference speakers, including those talking to mixed professional/spousal audiences after open-bar events, are deadly dull; hardly anyone really wants to see yield curves over dessert and that last glass of wine. I started collecting photographs about markets and technology in the early 1990s, and tried to mix in some actual informative content. That, along with the natural sensibilities of a borscht belt comic, made me a popular alternative to the yield curve guys. Given the 20-minute rule for these talks, none of them were as voluminous as this chapter. Still, this is not intended in any way to be a complete history of market technology, but rather an easily digestible introduction. I occasionally still do these talks on what remains of greater Wall Street. I am also open to weddings, quinceañeras, and bar mitzvahs, since we all need diversified portfolios these days.

Looking into the workings of modern securities markets is like looking under the hood of a Prius hybrid car. There are so many complex and obscure parts it's hard to discern what's going on. If you look under the hood of an auto from a simpler era, for example a '64 Mustang, you can see the parts ...