any Investment Banks have invested in this business. There are, however some drawbacks. This can lead to markets becoming fragmented. Members in one form of ECN have no other form of reference the prices in other ECN's, or for that matter the prices on NASDAQ or NYSE. In conclusion, there will always be a demand for the NYSE system as we know it and the inclusion of specialists. Each system has it's own strengths and weaknesses. The NYSE is very rigid and time consuming, however specialists create liquidity. OTC's create a spread for a buyer and seller in a market, however it is much faster than an exchange and doesn't require two parties to be on the same floor. ECN's virtually eliminate commissions and spreads, but may create fragmented markets. This is precisely why no single system will completely dominate or be eliminated. Market share of trading volumes among the three major markets will trend towards increasing parity. Collectively the three systems as a whole give the market liquidity because certain types of investors may wish to use a certain market. Competition among the markets gives investors more options and creates market efficiency....
