Latin American Capital Markets

GLOBALIZATION.TECHNOLOGY; AND REGULATION IN CAPITAL MARKETS 51Box 2-5 1 Ownership of Electronic Communication NetworksElectronic communication networkInstinctIslandRedibookTradebookArchipelagoBRUTStrikeOwnerReutersDatek OnlineWaterhouse SecuritiesVulcan VenturesSpear, Leeds & KelloggBloombergBank of New YorkTerra NovaE*TradeGoldman SachsJP MorganAmerican CenturyAutomated Securities ClearanceGoldman SachsMerrill LynchMorgan Stanley Dean WitterKnight/TrimarkBear SternsDLJPaine WebberCantor Fitzgeraldask price. Optimark is another system that allows investors to execute transactionsbased on optimizing preferences. Primex is yet another system designed as an electronicauction market. Large financial intermediaries that have adequate financial resourcessponsor the new systems and have already started expanding globally. It is notclear who will eventually win the race among ATSs. For now, the same financial intermediaryis taking positions in several systems in order to keep its options open. Regulatorswill need to contend with these new ATSs (exemplified by the numerous ECNs).Regulation of Alternative Trading SystemsTrading systems perform tasks similar to an exchange, channeling orders from theoriginator to the execution site and transforming orders into trades.The process involvesdisseminating the pre- and post-trade data to the market. Regulators are con-Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub