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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Nov. 5, 1981)
|j‘ Page 14 THE BATTALION 11 THURSDAY, NOVEMBER 5, 1981 Features F ft l f , r r 1 ' & a i- Computer age gets ticker-tape parade w Stock Exchange updating technolo United Press International NEW YORK — By the end of the day, the trading floor of the New York Stock Exchange looks as if one of New York’s famous ticker- tape parades had been held there. Critics contend the paper- strewn floor testifies to the ex change’s failure to emerge from the technological dark ages. Actually, the Big Board has poured millions of dollars into computer systems to upgrade its communications, data reporting, order routing and trade proces sing operations. But the 2,800 exchange and brokerage employees crowding the trading floor still use pencil and paper to transact most of their business — much as their prede cessors did curbside on Wall Street 189 years ago. Exchange officials acknowledge they have been slow to upgrade floor operations with new technol ogy. But that, they say, is changing. Located on an upper floor of the exchange is a laboratory where re searchers have been developing new equipment to bring stock trading closer to a paperless socie ty in the next few years. Since the Product Analysis Laboratory was created in March 1980, researchers have come up with an arsenal of computer-age technology, including hand-held computer terminals, touch- sensitive computer screens, voice-input computers and credit cards with built-in microproces- Typically, a reporter pencils in six or seven items on a card, which then has to be fed into an optical scanner to be transmitted to the ticker. With a hand-held terminal, which resembles a pocket calcula tor, only two or three keys have to be pressed for the data to be re corded and instantly trasmitted onto the tape. Erik J. Steiner, head of the six- member lab research team, says the terminal can help reduce errors as well as speed up the re porting process under most trad ing conditions. A wireless version is expected to be tested on the floor early next year. Another device, which Steiner believes holds promise for impro ving the speed and efficiency of executing small trades, is a touch- sensitive terminal screen. Rather than pressing a key on a computer keyboard, the operator presses a point on the screen to initiate a command. Instead of brokers having to hand deliver routine order tickets to the floor specialist in the stock, Steiner says, orders could be transmitted via computer. They would show up on the terminal, and the specialist could match the orders, pick the price and execute the order with a few gentle touches of the screen. Steiner says the system might undergo a pilot test early next year. The lab also has developed a computer terminal which re sponds to voice commands. Michael Lightman, another member of the lab team, said the voice system probably will find more immediate application in the quieter, and less hectic off-floor trading areas because an operator has to pause between words and pronounce them exactly as he did yesterday. The computer is trained to recognize the voice ENGINEERING AND COMPUTER SCIENCE MAJORS We’re looking for new sources of energy. Transco Companies Inc. Our business is energy — exploration, production and transportation. We're a young, aggressive company. An engineering trend setter. A multibillion dollar New York Stock Exchange listed corporation, Transco is yourself in management be fore you know it. Opportunities to grow quickly, salaries at the top of the industry scale and in novative thinking bring out the best in our team members. For more information on growing fast. And Intelligent, ambitious college graduates with fresh ap proaches, who can meet challenges, ac cept responsibility and act boldly. 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A broker’s word is his bond, but be- MC prepa ferocii So With a smart-card, Steinets: ' )U j^ itli hrnlcprs rmiM waHrawav* (Jtncr cause there is no exchange ceipts, disputes often arise when one thought he he® other say something else both brokers could walkaway the same electronic recordi][{ ; ^ e ’ car transaction. “Really the essence of i this,” said Steiner, “is to ini] the quality of the tradingpn« ■, without slowing it down.” Inflation’s effect on U.S. housing could be harmfi United Press International NEW YORK — One of the most serious consequences of pro longed inflation could be its effect on housing — making it almost impossible for millions of Amer icans to find a place of their own, Gregory Junkin says. Executive vice-president of Balcor Co., of Chicago, which owns 15,000 apartment units in 20 states, Junkin says the current housing crisis in the United States is far worse than most people realize. “Attention has been focused on the high prices and shortage of mortgage money for single-family houses” he said, “but the shortage of rental units is so bad that rents likely will go up 100 percent in the next five years — if you can find any place to rent. Few people can stand that.” Junkin says he’s scared. He sees no hope of an early cure for inflation, high interest rates and other conditions that have caused the housing crisis. He said it is potentially the most dangerous of all inflation-induced hardships for people and the one most likely to explode in violence. He said people may not realize it yet but the nation is on the verge of a doubling up crisis in which most families will have to take married children and their youngsters or older parents into their homes. The crisis is being aggravated, he said, by several factors. “The very rich don’t care how high the price of purchased shel ter goes,” he said, “because they think the prices will keep on going up and their investments will be safe. All they’re interested in is II the amenities. “Shelter expectations oftai young people are so mi than were those of their pc when they were young. Tliej of family formation is fasten The influx of rich foreigners^ illegal aliens also helps ap; the housing shortage.” Although Junkin offerednis cific proposals for dealingwiti: crisis, President Leon T. lei of Mortgage Guaranty Ins® Corp. of Milwaukee did. In& mony before a congressionalo mittee, Kendall took almo! so m be r a v ie w of the crisis asji in, saying the shortfall of morti money could reach tHOObilte a single year by 1989. He commented on the much lie rate of family formation todii Kendall urged Congress several things: —To remove the SECrp tion cost impediments apphi: issues of conventional mortts backed securities. —To aprove plans to alloni Federal Home Loan Morto Corp. and Federal NationalUr gage Corp. to develop guaranties for conventional] gage securities under pi aegis. —To direct the Departmei Labor to remove overly restrid rules so more private pens funds can be used to buy gage-backed securities. —To pass the proposed Bon Jenkins bill to make itposi generatq mortgage funds “vial free monies” the way the Savers interest tax exemptions tion of the 1981 taxlawisattn ing money into savings for you all week with these Evening Specials:” Mon. “ B p l ^ ue $ 3 45 Tues. ' steakand $ 3 15 “Peels” ‘ J \A/ptf4 “Fried Shrimp $f^45 ww Dinner” Thurs. 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