I know it’s a bit of a tortured metaphor, but reading about how the NYSE is implementing a blockchain-based trading platform to allow for world-wide, 24/7 trading (instead of the usual 9-5, M-F with after-hours trades being a separate thing) for whatever reason reminds me of how CNN introduced a 24 hour news cycle that basically upended how journalism was done and news was (and is) reported – largely for the worse. There’s already some pressure to maintain certain volumes of trades, with higher or lower volumes being seen as a sign of change or stress on the system. And we certainly have seen all sorts of nonsense crop up due to HFT, with many arguing that it never actually created the improved liquidity that people claimed it would. So I have to wonder what the impact of ever-trading is going to be, or whether we can even predict it?
I don’t even know why it already isn’t.
It wouldn’t really be too different than how it works now so I doubt it would have even a fraction of the impact 24/7 news channels had when they fucked up journalistic integrity. You have to have integrity in the first place, and I have yet to see anything that shows Wallstreet has ever had any.
I think “integrity” in the finance market is actually extremely important. It’s not moral integrity though, it’s literal proof that a transaction happened, which is why they’re using blockchain tech (this is a thing it’s actually good at). But my thoughts revolve around whether this will make it easier or harder to detect manipulation, or some other unintended consequences.
It will certainly favor institutional investors over individual investors (who will still need to sleep sometimes), but I’m not sure what doesn’t at this point, so I’m not sure how much that will matter.
Doesn’t it actually help individuals more, as institutional investors already do post market deals/trades?
I dont really understand why a blockchain solution is required for this. It seems more likely that this is some sort of a derivitives like thing. Yoy can buy tokens that are fungible with shares? Why not just…like… Buy the share?
I think the token is just a 1:1 representation of a particular share on the chain, and they use the chain because it’s an immutable ledger.
