The stock market data system communicates market data - information about securities and stock trading - from stock exchanges to stockbrokers and stock traders.
Video Stock market data systems
Histori
The earliest stock exchanges were in France in the 12th century and in Bruges and Italy on the 13th. Presumably the data on trading at the time was written by scribes and lived by couriers. At the beginning of the 19th century, Reuters sent data by pigeon post between Germany and Belgium. In London, the initial exchange was located near a coffee shop that might play a role in trade.
Limestone
In the late 1860s, in New York, young men called the price of "runners" between brokers and brokerage offices, and often these prices were posted by hand on large chalk boards in offices. Updating chalk boards is an entry point for many merchants entering the financial markets and as mentioned in the Reminiscences of a Stock Operator book that updating the boards will wear fur sleeves so they will not inadvertently remove the price.
The New York Stock Exchange is known as the "Big Board", probably because of this large lime board. Until now, in some countries, such blackboards have continued to be used. The Morse code was used in Chicago until 1967 for merchants to send data to a clerk called "sign board".
Newspapers
From 1797 to 1811 in the United States, New York Price Current was first published. It was apparently the first newspaper to publish stock prices, and it also showed the prices of various commodities.
In 1884, the Dow Jones company published the first stock market average, and in 1889, the first issue of the Wall Street Journal appeared. As time passed, another newspaper added a market page. The New York Times was first published in 1851, and added stock market tables later on.
Maps Stock market data systems
Electronic system
Quote band
In 1863 Edward A. Calah of the American Telegraph Company created a stock telegraph printing instrument that allowed data on stocks, bonds, and commodities to be shipped directly from the exchange to brokerage offices across the country. It prints the data at 0.75 inches (1.9 cm) wide of wound paper tape on large rolls. The resulting sound when printing makes it obtain the name "stock ticker". Other inventors increased on this device, and eventually Thomas Edison patented a "universal stock ticker", selling over 5,000 by the end of the 19th century.
By the beginning of the 20th century, Western Union acquired the right to increase the ticker that could handle increased volume of stocks sold per day.
By the time the stock market fell in October, 1929, trading volume was so high that ticker was left behind, contributing to the panic. In the 1930s, New York Stock Ticker became widely used. Further improvements were made in 1960.
In 1923, Trans Lux Corporation sent a rear projection system that projects a ticker to move to the screen where everyone in the broker's office can see it. This was a huge success, and in 1949 there were over 1400 stock-ticker projectors in the US and another 200 in Canada. In 1959 they started sending a Trans-Video system called CCTV that gave subscribers a small video desk monitor where he could monitor tickers.
In August 1963, Ultronics introduced Lectrascan, the first wall mounted all electronic ticker display system. In 1964 there were over 1100 units operating in stock broker offices in the US and Canada.
The competition, including the Ultronics' Lectrscan electron wall system, leads Trans-Lux to introduce the Trans-Lux Jet. The disk jets are lit by air moving on the belt in the broker's wall. Brokers ordered more than 1000 units in the first six months, and by mid-1969 more than 3000 were used in the US and Canada.
Auto citation board
The citation board is a large vertical electronic screen located in the broker's office, which automatically delivers the latest data on shares selected by the local broker. In 1929, Teleregister Corporation installed its first look, and in 1964 over 650 brokerage offices owned them.
Information includes the previous day's closing price, opening price, high for the day, low for the day, and current prices. Teleregister offers data from New York, USA, Midwest, Chicago Mercantile, Commodity, New York Cocoa, New York coffee and sugar, New York Mercantile, New York Produce, Cotton New York, and New Orleans Cotton exchanges, along with Chicago Board Trade.
Some companies have battery phone operators sitting in front of the Teleregister board to supply commission houses with price and volume data. In 1962 two such batteries dealt with more than 39,000 calls per day.
In 1955 Scantlin Electronics, Inc. introduces a very similar display system in appearance but with double digits Teleregister size, fits into the same board area. It's cheaper and soon installed in many brokerage offices.
The stock quotation system
By the late 1950s brokers had become accustomed to some problems in doing business with their customers. To trade, the investor must know the current price for the stock. Investors got this from brokers who could find it on board. If the last trade (or the stock itself) did not reach the board (or no board), the broker sent a request for a price to the company's "wire" in New York. There, such a request will be forwarded to the appropriate exchange floor, where the messenger can copy the price at the location where the shares are traded, and answer the phone back to the wire room. The typical elapsed time is between 15 and 30 minutes just to inform the broker.
Quotron
Jack Scantlin of Scantlin Electronics, Inc. (SEI) developed the Quotron I system, which consists of a magnetic tape storage unit that can be placed in a broker and Desk Desk with a keyboard and printer. The storage unit records the data from the ticker line. Brokers can enter stock symbols on the unit table. This triggers a reverse search on the magnetic tape (which continues to record incoming ticker data). When a transaction is placed, the price has been sent to the table unit, which prints it on the tape.
The first Quotron unit was installed in 1960, and was soon successful. In late 1961 the broker rented Quotron in about 800 offices, serving about 2,500 units of tables across the United States.
Ultronik vs. Quotron
Quotron's success caught the attention of Robert S. Sinn, who observed his loss: it could only provide the last price. The opening price, high and low for the day, and stock volume are not available. The system accepts ticker transmissions from various stock exchanges and commodities. This is then automatically interpreted by the hard wired digital computer updating the drum memory with the last sale price and at the same time calculating and updating the highest and lowest and total volumes for each share. When these items are updated the data packet will be generated for transmission by AT & amp; T Dataphone at 1000 bits/sec for an identical magnetic drum storage device in every major city in the United States. Slave drum memory units located in metropolitan centers in the US are then accessible by desk units at local stockbroking offices again using Dataphone transmissions. The desk units will set the ticker symbol code for the desired stock by mechanically moving the micro switch. The local control box will continue to interrogate each table unit in sequence and send data request packets by Dataphone to the local drum memory which will then send the data packet back to the local broker's office. Each packet for both the request and the answer will contain the request of the alphabetical symbols of the stock plus the unit identifier table. Since the table unit controls the statically requested stock code the table unit automatically updates the stock, volume, and height and lowest prices without operator intervention because the control unit can complete the interrogation of all desk units in the office around each unit. or two seconds, This is the first use of packet data transmission with the identification of the sender embedded in the data packet to avoid switching the predecessor from the internet? There is no transition across the system; all done with a data packet containing the sender's identifier.
Sinn formed Ultronic Systems Corp. in December 1960, and became president and CEO since then until he left the company in 1970. In the fall of 1961 Ultronics had installed its first table unit (Stockmaster) in New York and Philadelphia, followed by San Francisco and Los Angeles. The Stockmaster counter unit offers fast access to users and ongoing monitoring of the latest, bid, demand, high, low, total volume, open, close, earnings, and dividends for each share on the NYSE and AMEX plus commodities from various US. commodity exchange. Ultimately Ultronics and General Telephone (who bought Ultronics in 1967) installed about 10,000 units worldwide. In June 1964, Ultronics and the British news agency Reuters signed a joint venture agreement to market Stockmaster worldwide outside of North America. This effort lasted for 10 years and was very successful, seizing the world market for stock information and US commodity prices. Ultronics invented the time division multiplex equipment to take advantage of the Reuters class sound tracks to Europe and the Far East to transmit US stock and commodity information plus Reuters's teletype news channel.
In the early 1960s when these first table top quote units were developed, the only real-time information available from various stock exchanges and commodities was the last sale and the offer line and the bookmark. The last sales ticker contains every trade with price and volume for each trade. Bid-ask ticker contains only two prices and no size. The data volume in the last sales ticker is therefore much larger than the bid-ask ticker. Because of this, on a high-volume day, the last sales ticker will run fifteen minutes behind the bid-ask ticker. This time difference makes asking-asks in their desk top units very important for a stockbroker even though there is an additional fee to exchange for this information.
Scantlin Electronics immediately reacted to the threat of Ultronic. In early 1962 they began work on their own computer-based system and used it in December 1962. It used four computers Control Data CDC 160A in New York which recorded trade data in magnetic core memory. Major cities host Headquarters equipment connected to new Quotron II desk units designed in broker offices where brokers may request, for each share, price and net change from opening, or summaries that include the highest, lowest, and volume (then SEI adds other features like dividends and earnings). Request goes to Head Office, which condenses and passes it to a New York computer. Replies follow the order in reverse. The data is transmitted on AT & amp; T's Dataphone. In 1963 the new system was accepted by many brokers, and installed in hundreds of their offices.
At the end of each day, this same system sends a stock market page to United Press International, which in turn sells it to newspaper subscribers around the world.
When Ultronics introduced their Stockmaster counter unit in 1961, they gave a service price at a price similar to that of Quotron desk units. They do not want price competition just a performance competition. All these offerings are sold at monthly rental rates. The cost of the system, the unit of the table and the installation is therefore born solely by the vendor not the customer (broker). The price at that time made the unit quite profitable and allowed the company to finance its costs and use the rapid accounting depreciation of the equipment. In 1964, Teleregister introduced their Telequote counter unit at a much lower price than Stockmaster or Quotron. This forces Ultronics and Scantlin to reduce the prices of their Stockmaster and Quotron systems. Telequote Unit Units never get a significant share of the top desk quote business, but their price cuts really reduce the overall profitability of this business in the US. Ultronics is fortunate to have made a joint venture agreement with Reuters for a business share quotation outside of North America where this price cut is not a factor.
The 1962 Cuban Missile Crisis blocked Ultronik from winning its first history. In July 1962, AT & amp; T launched its first commercial satellite (Telstar) to send television and voice lines between the US and Britain and France. It is a non-synchronous satellite that encircles the earth in an elliptical orbit of about 2.5 hours, giving only about 20 minutes of communication between the US and Europe on each pass. Ultronics is set with AT & amp; T to use one of his voice channels to send US stock prices to Paris in October 1962. All arrangements were made-the Stockmaster unit was installed at the Bache broker's office in Rue Royale and all American Stock Brokers and the press and television were ready for this historic event. About two hours before passing the stock transmission was canceled because US president John Kennedy would use his permission to send his speech to France on the Cuban missile crisis.
Am-Quote
In 1964, Teleregister introduced the Am-Quote system by which a broker could enter the code number into a standard telephone; a few seconds later a pleasant sound (re-recorded) repeats the code number and gives the required price information. This system, like Ultronics, utilizes magnetic drums.
Computerized checking
NASDAQ, founded in 1972 is the first electronic stock market. Originally designed only as an electronic quotation system, without the ability to conduct electronic commerce. Other systems soon followed and at the turn of the century, every exchange used this model.
See also
- Stock Market
- Stock trader
- Stock Exchange
- Financial data vendors
- Electronic commerce
- Securities
- Stockbrokers
- Selector band
- The trading room
References
External links
- Stock Ticker History
Source of the article : Wikipedia
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