> Monopolies do as monopolies do; extract all the wealth they can from the system. The only people who benefit in a scenario where 95%+ of stock trades go through the NYSE is the NYSE.
What's the risk here? That if the NYSE establishes a monopoly, it could extract a 0.5% tax on every trade?
I feel the theoretical possibility of wealth being extracted from you is somewhat insignificant compared to the actual extractions you are subjected to in the UK.
A monopolistic stock exchange could, off the top of my head: increase fees, engage in rentseeking behaviour, impose unfair rules, discriminate (against companies and traders) or reduce the quality of service.
Listing on different (or multiple) exchanges ensures that they engage in proper competition.
> compared to the actual extractions you are subjected to in the UK
An apt example of why it's healthy to have competition. A working professional or business could relocate to a country where less of their wealth is taken from them.
But your parent comment's point is that the harm from lack of competition among exchanges is a possible future thing, while the harm from being domiciled in a business-unfriendly jurisdiction is far greater and happens right now.
> What's the risk here? That if the NYSE establishes a monopoly, it could extract a 0.5% tax on every trade?
Whilst shares may be listed on the NYSE, they don't have to trade there - there's a number of alternative exchanges/ECNs/books/pools/brokers that will happily buy and sell NYSE listed shares cheaper/quicker than NYSE.
What if there was a large scale fraud on the exchange, and shares that were supposed to be owned by a person or fund were "owned" by several different people at once.
Or can someone provide a reason that's impossible?
Bearing in mind I've personally seen screwups with processing thousands of credit card transactions with a software update.
What's the risk here? That if the NYSE establishes a monopoly, it could extract a 0.5% tax on every trade?
I feel the theoretical possibility of wealth being extracted from you is somewhat insignificant compared to the actual extractions you are subjected to in the UK.