I just joined this list a couple of days ago, so apologies in advance if I repeat 
something that has already been discussed.  I'm pretty new to e-gold (haven't even 
got any gold in my account yet).  There is an idea that has just occured to me for 
how to narrow the bid/ask spread for e-gold.  There needs to be a central exchange 
which works like a stock exchange, where all market maker bids and asks are 
represented in the same place.  As it is now, if I want to find the best bid and ask, 
have to do hours or even days of research.  This is like buying stocks in the days 
before stock exchanges existed.  The stock exchange, by representing all bids and 
asks in the same place, makes price discovery much more efficient, improves 
liquidity, and narrows the spread.  

To narrow the spread even further, users should be able to have orders represented 
directly on the exchange, just as the Island ECN does for stocks.  Thus, if one user 
wants to buy e-gold and another wants to sell, they can make their own markets 
and bypass the market makers entirely, just as the Island ECN allows individual 
users to buy and sell stock directly to each other without a market maker getting 
between.  The market makers would always be there with the outside spread for 
when there weren't enough small buyers or sellers in the inside spread.

Users could have an account with a broker in order to have access to the 
exchange, just like with stocks.  The user would have to fund the account with 
cash, just like stock broker accounts are funded.  The cash account could have 
banking services associated with it.  Thus, users would have accounts with both e-
gold and cash, and converting between e-gold and cash would be cheap and easy 
because of the narrow spread that the exchange would generate.

~ Vincent

http://two-cents-worth.com/?263239&[EMAIL PROTECTED]

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