PT  - JOURNAL ARTICLE
AU  - Andy Novocin
AU  - Bruce Weber
TI  - Emerging Technologies and the Transformation of Exchange Trading Platforms
AID  - 10.3905/jpm.2022.1.390
DP  - 2022 Jun 30
TA  - The Journal of Portfolio Management
PG  - 45--57
VI  - 48
IP  - 6
4099  - https://pm-research.com/content/48/6/45.short
4100  - https://pm-research.com/content/48/6/45.full
AB  - The authors examine technology’s current and future influence on trading and the structure of markets. Order processing speeds and new algorithmic tools have driven market volumes up well beyond projections. At the same time, some high-profile technology developments have failed, and legacy practices based on dealer intermediation and telephone trading have proven resilient. Looking to the future of exchanges, we examine today’s pressures for changes. We propose that three emerging technologies will create new market structures and disrupt market providers and incumbent firms that offer market data and posttrade services to market participants: (1) algorithmic trust technology, (2) formative artificial intelligence, and (3) autonomous decentralized organizations (DAOs) and their associated webs of smart contracts that could perform financial markets functions.