Simple economics has persuaded The Toronto Stock Exchange to replace floor trading with a fully automatic equity trading system by the first quarter of 1993.
TSE members recently voted in favor of the move because it is expected to save Canada’s largest exchange more than $30 million over the next five years, while increasing productivity.
However, the decision to go fully automatic will also mean that 250 traders who scream buy and sell orders on the floor of the exchange will conduct trades by computer when the changes come into effect.
Exchange President Pearce Bunting said such a move could result in the loss of 50-60 jobs.
“To ensure that the move to full automation is accomplished without a reduction in services to the membership, the exchange will be pursuing a number of initiatives,” Bunting said.
They include redesigning and fully testing the equity trading network as well as a new custom-designed trading workstation.
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