Globalisation of the capital markets and the progress of telecommunication are stepping up the competition between the traditional exchanges, all vying for the largest piece of the world-wide cash flow. One of the most important tool to achieve this is the Internet. There for example, the American stock exchange publishes, besides the rates of the most important values, extensive reports on the share- and options markets, lists of the day's winners resp. losers as well as charts on the securities with the highest turnovers. Even exotic exchanges, like the Warsaw stock-exchange, the exchanges in Beirut, and even Kuweit are presenting themselves in the Net.
The internationally oriented investor however, is only going to invest his capital where he can be assured of a fast and fair execution of his transactions. This goes especially for hectic stock-exchange phases, requiring the uproots of the technical apparatus as well as of the qualifications of the employees. The statutory conditions have to be upheld as well. But aside from all that, it won't be long anymore until the first direct- or private exchanges come into existence. The first private exchange in the Net was opened last year in London, initiated by the young software company Electronic Share Information Ltd. (ESI) and the brokerage firm Sharelink. ESI lined up with the high-flying goal of establishing the first stock-exchange in the Net. But the experiment came to a halt. The live-transmission of rates-information was blocked by the venerable London Stock Exchange. The nervosity of the London exchange pros shows their fear of the electronic competition, because other institutes wanting to construct an electronic screen-trading system are shaking the foundations of the monopoly. Therefore, traditional exchanges won't be able to avoid using the Net as a global marketing instrument. The next step could be using the Net as a means of transportation for exchange-orders. Furthermore, the Net is also qualified for disposition confirmations as well as their execution. Companies like Aufhauser, Lombard Institutional Brokerage as well as ESI further offer a portfolio management which immediately converts the orders.
It can not be foreseen today, if a fully electronic balancing between supply and demand and the price fixing resulting therefrom will take place via the Net. Up to now, the rates are fixed exclusively by bonded official brokers even at computer-exchanges like Nasdaq. The largest obstacle on the way to electronic stock-exchanges are the exchange members and their interests. They fear the loss of business-shares and thus income. Should the visionaries succeed in winning the trust and confidence of the investors by proving their respectability, the stock-exchanges of the world can be located anywhere in the world in Cyberspace.