Eight for '08: Market structure predictions for the year ahead.

Traders, January, 2008 by Selway, Jamie

As we sound the closing bell for 2007, below are eight predictions for the new year, followed by a review of last year's list.

Equities Exchanges: Market Share Trench Warfare.

By summer, NYSE removes the last pro-Floor advantages from Hybrid, automating the open and close and rolling out reserve order functionality to all participants. As specialists are replaced with "designated market makers" who can take an unconstrained, Nasdaq-style approach to producing liquidity, the differences between the major exchanges-not to mention ECN competitors BATS and DirectEdge-drop from slim to none. Pricing remains as a competitive lever, and new NYSE management isn't afraid to turn the dial. Witness the flurry of price changes in the waning days of 2007. Market...

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