Dealers' Choice in Cincinnati: A Stock Exchange Experiment Raises Questions of Investor Fairne!
A major concern of the Securities and Exchange Commission for the past year has been that small investors donÛªt always get the best price when they buy or sell stock on the Nasdao_ Stock Market.</br></br>order goes to the trading floor and has a chance to compete with every other order for a particular stock, SEC officials argue.</br></br>Despite that, the SEC reportedly is preparing to extend an experiment in trading some NYSE stocks via a Nasdaq-like computerized system in which investors buy stock from dealers instead of trading with other investors.</br></br>Officials of the New York Stock Exchange are lobbying to kill the computer trading system, which competes directly with the exchange itself.</br></br>The dispute involves the Cincinnati Stock Exchange, which is not an exchange in the usual sense and isn't even in Cincinnati. The Cincinnati exchange, in fact, is a computer at the Chicago Board Options Exchange, and it works pretty much like Nasdaq, electronically handling orders to buy and sell stock.