Fintech began in 1860s

In Banks, Internet on 06/06/2016 at 1:48 pm

With the use of the telegraph

Timeline: The Evolution of Fintech Starting in 1865, the structures, networks and ideas that are the foundation for financial technology today began to take shape.

  1. That’s why the USD/GBP forex pair is still known as the “cable” to old farts, as the exchange rates used to be communicated thru telegraph via undersea transatlantic copper cables between New York & London.

    Telegraph also allowed companies to list simultaneously on more than 1 stock exchange to better obtain capital from investors & speculators. It was quite common for the largest companies at that time to list on NY, London & Paris.

    Of course only the big boys (e.g. banks, railroad barons, oil tycoons) had easy access to the expensive telegraph network & system. Some of them even had their own personal telegraph network. Ordinary investors had to rely on periodic price announcements, maybe every few hours or so. Hence it was very easy for the large players to engage in very profitable arbitrage. Basically 19th century dark pools and HFT. haha.

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