Questions of Ethics In Computer Systems and Their Future
1) Identify and discuss security issues and considerations evident for Information Systems
And computerization in the brokerage industry. ( Think about how the Internet has
already influenced trading.)
"The technology is getting ahead of regulators" claims David Weissman, director of money and technology at Forrester Research Inc., in Cambridge, Mass.
If one is to believe the quote above it sounds very ominous for the regulators and the government to attempt to even bring this media under any kind of regulation. But, what is it that they the government agencies truly are looking to regulate? If you take to the argument that this media, the Internet is truly a public access network, then the control to which they would like to extend to it would be the most regulated public access system in history. What I believe the attempt here is to regulate through censorship. Since it is almost impossible to censor the phone networks without actually eaves dropping on your phone, they have decided to regulate and censor your written word. The danger in this is what you write as an opinion may be construed by that government regulator as a violation of some regulatory act. The flip side to this is if you did this through another medium such as the phone system nothing would ever come it. The bigger question here is how much government do people want in there lives? The Internet was brought into the picture for the public as the next great technology of this century. It is without a doubt as big if not bigger than any other public means of communication that has come before it. With that in mind I think the government is trying to extract it's pound of flesh for what they believe is missed revenue dollars that could be made in the form of tax regulations.
"There are probably insiders touting stocks on the Internet either anonymously or under assumed names," said Mary Schapiro, president of the National Association of Securities Dealers, which oversees the NASDAQ market. The argument that they are both (the government and NASDAQ) currently running with is the "protection of the investor". When one looks at NASDAQ's complaint it is fairly superficial, for them it is clearly a loss of income for their trading environment
, for the government it is a loss of taxes that could be
derived from those trades. Are we to believe that both of these agencies only have the best intentions at heart for those investors that might be duped. These issues have been around for along time through the use of other mediums like the phone system, direct mail marketing, "cold calling" from "boiler plate" houses, and even unscrupulous brokers who work in legimate brokerage houses. People today are still the victims of these types of scams through the use of the older technologies. So how is it that since the older scams are still being used is one to believe that they will have anymore success tackling the complex nature of the Internet and the myriad of scams that could generate from it. The success rate of convictions from past indiscretions is low at best, one only has to look at the mountain of arrests for "insider trading", that the government launched during the late 1970's through the middle 1980's to realize for all the hype of cleaning up Wall Street not a whole lot ever came from the scourging. What it seems to me is Ms. Shapiro would be better suited to try and align her NASDAQ forum with the Internet technology to take advantage of the technology rather than trying to use the government to bully people into being afraid to use the technology. Her second quote of "there is a tremendous amount of hype," comes off as nothing but sour grapes and a big opportunity to use her position to knock the Internet. If she honestly believes she's done everything to insure her customer base that her system of doing business is any bit as less likely to fall victim to insider...
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