Are Stockbrokers, Traders Necessary?

Would someone please explain to me why in this day and age we still have security exchanges, traders and stockbrokers? Surely, the trading of all securities could easily be handled by one or more computers without the involvement of any human being.

You want to buy a stock? You pick up the phone--or use your computer--dial a number and enter the code of the stock you wish to buy together with your price limit. If there is a “sell order” in the computer that matches your order, the transaction is handled immediately and you send your money in. If there is no matching “sell order,” the computer holds your “buy order” until someone offers to sell at your price. In either case, there is no need for any stock exchanges, traders, specialists or brokers with their useless advice. And best of all, the SEC can program into the computer whatever rules it wishes without anyone there to break them.

We have the technology to do this today. What is the SEC waiting for?

HARDY SALWITZ

Ventura