DISCUSSION.

The article comments on a paper published within the issue. "Technology, Communication and the Performance of Financial Markets: 1840-1975," by Kenneth D. Garbade and William L. Silber, investigates the effects of innovations in information technology on security markets. The author discusses two points of criticism regarding the paper in question. He feels that the authors exaggerate the policy significance of their findings. He also believes they overstate their case regarding the importance of the consolidated ticker tape, noting that no impact on inter-market price differentials could be observed. The author feels that the automation of the trading processes is the next logical step for market integration, which is currently under active consideration by the U.S. Securities and Exchange Commission.