Our Founders were invited to a private tour of the New York Stock Exchange in May 2005.  Here are their remarks about the tour:

We thoroughly enjoyed our private tour of NYSE.  What struck us most was the flow of trading on the exchange.  Activity is fast and participants trade stocks everywhere at once, but there was an orderliness that doesn't show on TV.  It was especially poignant as we watched the floor traders and specialists because we realized that we were watching something that was slowly coming to an end.

The NYSE is changing to an automated trading system similar to the NASDAQ SuperMontage and that foretells the end of the specialist.  This is just one of many ways the NYSE is changing to meet the demands of the new millennia.

One big change that has already been partially implemented affects short sellers. The up-tick rule is being evaluated and a small group of stocks no longer require an up-tick before a trader can sell short.  The New York Stock Exchange and The Security Exchange Commission believe that automation of orders has changed the market and the old up-tick rule is not needed to trade stocks short.  Although most small traders never have to worry about the up-tick rule unless they are day traders, it was a reminder that the stock market is not static, it doesn't simply cycle over and over. The market grows, like a tree, branching out and adding new opportunities for everyone who trades.

We also enjoyed a tour of the NYSE boardroom, a vast room saturated with history and power.  It was easy to imagine the NYSE Seat holders of long ago and today discussing business in that room.  

The day ended with a trip to the stock market archives, a fascinating place that holds the history of the market.  We were intrigued to read a book written in the late 1800's about the stock market.  It spoke of volatility, irrational buying, and speculation beyond comprehension.  It reminded us that stocks and the market change, but human emotions remain the same.

The next day, we listened to an SEC officer as he discussed the changes coming to the marketplace and gained invaluable insight to the next decade of trading. What was prevalent everywhere we went was a sense of a coordinated effort to keep the market a fair trading environment.  What concerned the specialists and SEC officers most and what they wanted us to convey back to our students was that the market is solid, it is fair, and that they work hard to keep it that way.

We went away from the tour of NYSE with a greater appreciation for the floor traders, market makers, and their role in the day to day activities of the stock market. 

Martha Stokes C.M.T.