| ▲ | orthogonal_cube an hour ago |
| > Why do we have that complex systems where shares can only be traded by regulated entities (brokers) Because it safeguards against fraud and tax evasion. > Paying 2-5$ fees on trades seem backwards this day and age. Many brokerages don’t charge for buying or selling stock. They make their money elsewhere, likely with contracts on calls/puts. But to your point, having to pay a variable rate fee for moving my Ethereum from one wallet I own to another wallet I own also seems silly. I’m certain though that in both cases the charges cover the maintenance costs to keep the platform going. Everything comes at a cost. |
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| ▲ | littlecranky67 an hour ago | parent [-] |
| I didn't say anything about decentralized blockchain or anonymous tokens. We could have a kyc process and a single centralized blockchain run by the stock exchange, which only settles transactions to kyc customers - fraud prevention and tax evasion applies. The real-time trading independent of brokerages, the free information flow of trading volume/direction etc. all benefits and a true, real free market. Right now we have mountain of unneeded intermediaries, that sit and cash in on the data and access. |
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| ▲ | RandomLensman an hour ago | parent [-] | | Would you expect exchanges to permit everyone to trade directly? How would you police the consequences of, for example, no entry policing? How would you want to police requirements if everyone is on the exchange or some venue (e.g., around algorithms)? But complexities of any new system aside, what is an example of a cashing in of an unneeded example in terms of an activity? | | |
| ▲ | littlecranky67 an hour ago | parent [-] | | You public key is registered with a kyc progress. Transactions (transfer of shares) is only settled when all parties have a kyc-verified key. Again, centralized chain (proof of authority). Any and all transactions can be reversed and changed by the regulator if needed. The main difference over today is, you have a open, access-to-all (after kyc) and no intermediaries. Examples for cashing in: payment for order flow (was recently banned in the EU). They litterally sold their trading data of retail clients for money. Not sure how you think brokers make money, but they get kickbacks from market makers and fund providers, or simply higher spreads. No one works for free. | | |
| ▲ | RandomLensman 37 minutes ago | parent [-] | | You want transactions to be easily reversible? Payment for order: what data was sold (or do you mean the orders as data)? You mean broker as in a pure broker, not broker-dealer? What about policing algorithms, for example? Who'd do that and how? Who provides liquidity? Just natural supply and demand? | | |
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