http://www.zerohedge.com/article/pa...-moral-hazard-and-calls-return-glass-steagall
Along with the old brokerage model....The GS model is fatally flawed....along with its peers....
What is left of the old brokerage model will quickly be replaced by completion of the BATS induced model....
Brokerage evolution....
writing paper submissions
paper to computer inputting
paperless trading
direct access electronic trading
Next step....
direct access electronic de-fragmented
worldwide exchanges....
transfer costs 20 cents per 100 units or
less regardless of security type....
Information....wiki style format
Direct access technology....seamless news... direct access electronic transaction ...whereby one instantly clicks on a chart to transact....reflective of exchange costs only....in a first come first served mandate....all security asset classes....first come first served....de-fragmented exchanges....
..................................................
The GS "Business Conflict of Interest" model will quickly become extinct....
for obvious reasons....
The biggest of which is "conflict of interest" between the business and its
customers....
No one trusts this model....and is a stained and encrypted disease to a fair and balanced system....
Simple speak....
The old model....
Create public and private paper....
Own the exchange business itself....
Make money on transacting while being served first....
Own political sway and governance....
What has to happen....
Get rid of all conflicts....
Which means....
The New Model....
Creating public and private paper...
This is the viable portion that is left of the old model....however legal largesse costs have to be removed....or this too will move to lower cost jurisdictions....
Along with the old brokerage model....The GS model is fatally flawed....along with its peers....
What is left of the old brokerage model will quickly be replaced by completion of the BATS induced model....
Brokerage evolution....
writing paper submissions
paper to computer inputting
paperless trading
direct access electronic trading
Next step....
direct access electronic de-fragmented
worldwide exchanges....
transfer costs 20 cents per 100 units or
less regardless of security type....
Information....wiki style format
Direct access technology....seamless news... direct access electronic transaction ...whereby one instantly clicks on a chart to transact....reflective of exchange costs only....in a first come first served mandate....all security asset classes....first come first served....de-fragmented exchanges....
..................................................
The GS "Business Conflict of Interest" model will quickly become extinct....
for obvious reasons....
The biggest of which is "conflict of interest" between the business and its
customers....
No one trusts this model....and is a stained and encrypted disease to a fair and balanced system....
Simple speak....
The old model....
Create public and private paper....
Own the exchange business itself....
Make money on transacting while being served first....
Own political sway and governance....
What has to happen....
Get rid of all conflicts....
Which means....
The New Model....
Creating public and private paper...
This is the viable portion that is left of the old model....however legal largesse costs have to be removed....or this too will move to lower cost jurisdictions....
