As we embark on the dawn of the new Millenium, these words reflect our puzzlement as we witness the age of Technology. Technology has profoundly altered the way we do business in the securities industry. Through eSchwab, discount broker Charles Schwab opened 1.4m new accounts during 1998. Currently there are 8 traditional stock exchanges registered with the SEC, but there are more than 20 private electronic trading systems where institutional traders can trade without touching a traditional exchange. Change I quote all these examples because technology is changing the whole ball game.
Technology brings change, confusion, competition and consolidation.
But it also offers creativity and opportunity. It cuts out the traditional middle-man, but brings value to the consumer and investor. This is why firms that are willing to apply Web technology to their business are being rewarded in terms of larger market capitalization. This is why we have seen the merger of banks with insurance companies, asset management companies and securities houses. This is why we are witnessing open outcry trading floors being replaced by screen-based trading.