The Updated Financial Development And Structure Database Research Paper

The Updated Financial Development And Structure Database - Research Paper Example The change of the technical platform resulted in back and forth arguments that put the marketplace into uncertainty (Fletcher, 2011). 11 In the month of October 2009, LSE indicated that they were planning to acquire a different trading platform called Turquoise Trading. The targeted trading facility enjoyed a stronger technical system, which was already renowned in the financial marketplace (Fletcher, 2011). Turquoise trading was operated on a stronger technological platform than the LSE. In the same period, LSE faced a technical challenge in the data management system, which led to a one-hour outage (Collett, 2004). Although one hour is such a short period, for investors in the financial markets it means lifetime. LSE also faced another challenge when a server software malfunction stopped trading activities in the same year. 11 The celebration that globalization and technological advancement have expanded the financial markets has received criticism because they have also presented the diverse crisis to the industry (Esqueda, Assef, and Mollick, 2012). Critics argue that much as they have enhanced efficiency, liquidity, and integrity they have been responsible for some unexplained disruptions in the marketplace. First, advancements in technology and globalization may lead to corruption of information through loss or theft. Secondly, whether intentional or intentional, the failure of technical frameworks and unchecked global interactions in the financial markets can present major setbacks. Given the evidence provided, it is clear that advancement in technology and subsequent globalization may have detrimental effects on the financial markets. 12 A strong financial environment promotes economic growth in any state. The financial market also plays a critical role in the economic environment since it enables major firms to obtain funds for facilitating investments.