Here, with an example, it’s easy to understand. We have mainly 2 brokers on the stock market. BSE & NSE. It’s only on these exchanges that PRICE DISCOVERY happens. Brokers don’t do the price discovery. And the number of exchanges is limited while the brokers are plenty.
Same way, if due to MBED, Govt. comes up with some other central platform for trading, PRICE DISCOVERY will happen there and not on IEX / HPX or others. In that case, all other power exchanges will act like brokers only.
Hope this clarifies.
dr.vikas
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