How amazing could it be when we get to hear about something new or unique that comes to exist in the market? Trade network has been there for centuries in our world – not only to deal with the physical commodities but also with the money markets. The presence of so called “mutual fund” in the market is there for centuries where billions of dollars gets traded among each other. A group of people in a network manages to pull capital that gets invested to achieve certain objectives. Well, now to make this system work even efficient and competitive, new platforms are going to get created. Reading an article from Wall Street Journal titled “Venues for Bonds Fight for Trader” got me to think about how this new approach could make few companies to stand out from the rest. The mutual fund investors are seeking for a reliable market, a network of people, who are interested to trade debts. Unlike Nasdaq and other stock exchanges, the debt market is not as efficient. Also, it seems quite conspicuous that Wall Street while acting as a middleman always gets to make huge profit (they call “fees”) from these trading. The new approach of creating new platforms is expected to form new network of investors, who can trade efficiently and can mean a lot in term of bringing vital economic changes.
You may want to check this out:
Economic Theory of Networks at Temple University 