Once again, the future of the specialists

We've been among the many voices noting that traditional NYSE specialists seem to be toast. In this era of electronic trading, their value had been sorely reduced to that of small, retail orders that need to be worked. But the reality is that the NYSE would like to shift their role to that of a more NASDAQ-like market maker. That is, they would not enjoy the benefits of controlling order book information--that is supposed to be public--but would still enjoy some advantages. Their responsibility for providing liquidity in times of crisis would need to be spelled out, even though no one sees them as a real source. To make all this happen, according to Financial News Online, the NYSE has hired Todd Abrahall, who will work with NYSE specialists and figure out a way to preserve their lives. In an indication of what's to come, the NYSE has bought Wombat Financial Software.  

For more:
- here's the Financial News Online article
- here's an article on the Wombat deal