We live in an incredibly interesting period characterized by an ever-rising rate of technological development. Instability continually increases with the rapid development of communication networks. It is easier to find the other side of the trade and hence the need for intermediary services is diminishing. The rules are changing rapidly, but the good news is that the trading volume is exploding. It seems we re heading in the direction of multiple competing trading venues, rather than the implicit design of the 1975 Securities Act.
Fragmentation is a synonym for competition.
Now economic theory tells us that utility is maximized when we permit competition to flourish, so market centers that encourage and facilitate competition for order flow will fare the best. Nasdaq has a second advantage at the moment. It has been subject to enormous criticism in recent years and as a result has lowered barriers to change. Two, Nasdaq should invite and encourage competition within and among trading venues. Call markets should be used to open and close the Nasdaq market.