Stock Markets Exposed

What specialist were eliminated from the US Stock market?

I heard they had been useful in curbing violititlity.

Public Comments

1. Specialist still used at the traditional physical exchanges, NYSE, AMEX. More orders are routed electronically which may increase volatility. Also more non physical exchange markets exisits these days, which may also increase volatility. taxtbook review.
2. Specialists create a market when their is none. Suppose you wanted to sell 1,000 shares when there were no buyers to match you with. In that case, the sell pricewould plummet until a willing buyer came along, which would make things volatile. A specialist steps in and can buy the shares from you in order to support the market for that security. Specialists are not going away because of exchanges going electronic. Nasdaq, an electronic market place, has the equivalent of specialists, known as market makers that serve the same function.