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The Evolution of the Market Data Feed

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Today's stock exchanges are worldwide, and with the advent of the Internet, anyone can get into the action, regardless of wherever they take up residence. Real-time, delayed, historical, and end of day data for websites affords access to all. This also means that there is a multitude of data available for investors, and they can easily go into information overload. Savvy companies determine which market data feed to include on their websites, and customize theses displays to target their website visitors, clients, and customers. But it wasn't always so complicated.

Did you know that the first stock exchange didn't even trade a single stock? Although Venetians in the 1300s were the first to begin trading government securities, it was Belgium that actually established the very first stock exchange, without trading any stock. Starting in 1531, Moneylenders and brokers would gather in Antwerp to deal in government, business, and individual debt issues. They only dealt in bonds and promissory notes, not stocks.

In the 1600s, exploration by ship was a risky business, but in order to set sail, ship owners would seek investors to support an upcoming voyage. In return, investors would receive a piece of their returns. But when the East India companies formed, they removed the risk of investing per voyage€"they had stocks that would pay dividends on the proceeds from all the voyages the companies sail. Thus, they formed the very first modern joint stock companies. Who were these East India Companies? The British, Dutch, and French governments gave charters to companies with €East India€ in their names.

Here's the problem with the East India companies€"all the shares were issued on paper, so investors would need to find a broker to carry out a trade. Brokers and investors liked to congregate in coffee shops around London, so available shares and debt issues were simply posted on the doors of these coffee shops or distributed in a newsletter.

The next problem: The British East India Company was a monopoly backed by the British government, and there were no rules or regulations for trading shares. The South Seas Company (SSC) received a similar charter from the king to sell shares. Without any regulations in place, a crash occurred that caused the English government to ban the issuing of shares until 1825. The first stock exchange in the US was the Philadelphia Stock Exchange, but the NYSE, which began trading stocks in 1792, quickly overshadowed it because the NYSE began in the heart of New York's business district. It always remained the most powerful stock exchange, until the inception of the NASDAQ in 1971. As a brainchild of the Financial Industry Regulatory Authority (FINRA), it doesn't even occupy a physical location. Instead, it's just a network of computers that handles trades electronically.

Thus, we arrive at today's market atmosphere€"World trading digitally. And investors expect to receive their market data feed in this fashion, too. Real-time and end of day data for websites and mobile devices are a must. To find out more about delivering this kind of information to your website visitors, visit BarchartMarketData.com.
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