Brokerage, ECNs, and Stock Exchanges - Lecture 19

Explore the crucial role of stock exchanges, brokers, and dealers in financial markets through this comprehensive lecture from Yale University's Financial Markets course. Delve into the evolution of trading systems, from traditional stock exchange floors to modern Electronic Communication Networks (ECNs). Discover how these institutions facilitate price discovery and bring together buyers and sellers of securities. Learn about the historical development of information technologies in finance, starting with the ticker machine and progressing to today's automated exchanges. Examine the inner workings of physical trading floors and gain insight into the challenges faced by dealers, including the concept of the Gambler's Ruin problem. This 73-minute lecture provides a thorough overview of the mechanisms that drive modern financial markets and the technological innovations that have shaped them over time.

- Chapter 1. Introduction: The Broker and the Dealer
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- Chapter 2. Exchanges in the United States
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- Chapter 3. From Ticker Tapes to ECNs: The Impact of Technology
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- Chapter 4. Action on the "Floor" of the Stock Exchange
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- Chapter 5. The Dealer's Life and the Gambler's Ruin Problem
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