SIBOS may have just witnessed a day that put the first nail in 'execution only stockbroking'. peterevans one of the smaller software houses is demonstrating its new app, which basically negates the need for the middle man (stockbroker) by executing directly
on the Stock Exchange.
The obvious thought is to link the app to the wholesale market and get a much better price. How long before this app spreads across retail investors providing easy to use technology, with immediate updating of the portfolio and risk assessment, whilst shooting
off the confirm to self clearing, with true stp.
It's just a matter of time before the payment instruction will also be added to the confirmation, bringing the happy thought of immediate settlement and a totally riskless transaction.
So whats the future for Stockbroking? It's hard to see one, as research long lost its value and many of the value added services can be bought elsewhere. Most likely the only stockbroking service to hold its value will be advisory, however, this can easily
be accomodated by IFAs.
SIBOS is not often a history making event but this week may well be remembered as the day stockbroking died.