Digitization of Financial Markets: Impact and Future

Financial instruments were traditionally traded when stockbrokers and traders met at trading floors and executed transactions. The stockbrokers monopolized the market and their insights and recommendations were the only source of information for investors. Trading was practiced this way globally until the dot-com revolution when communication became affordable and accessible to the common man. Trading as an act transformed from physical floor trading to electronic trading, a method of trading securities (such as stocks, and bonds), foreign exchange or financial derivatives electronically Our research takes us through the initial ways of trading, the types of electronic trading platforms, the impact that digitization has had on financial markets and concludes with the future of electronic trading in financial markets.