Editing Network effect (section)

===Financial exchanges===
Transactions in the financial field may feature a network effect.  As the number of sellers and buyers in the exchange, who have the symmetric information increases, liquidity increases, and transaction costs decrease.<ref>{{Cite journal|last1=Nel|first1=George F.|last2=Smit|first2=Eon|last3=Brummer|first3=Leon M.|date=2018-04-12|title=The link between Internet investor relations and information asymmetry|url=https://sajems.org/index.php/sajems/article/view/1966|journal=South African Journal of Economic and Management Sciences|volume=21|issue=1|doi=10.4102/sajems.v21i1.1966|issn=2222-3436|doi-access=free|access-date=2020-10-31|archive-date=2020-11-07|archive-url=https://web.archive.org/web/20201107041204/https://sajems.org/index.php/sajems/article/view/1966|url-status=live|hdl=2263/66593|hdl-access=free}}</ref>{{failed verification|date=February 2024|reason=See [https://en.wikipedia.org/w/index.php?title=Network_effect&diff=1201938342&oldid=1193499676]}} This then attracts a larger number of buyers and sellers to the exchange.

The network advantage of financial exchanges is apparent in the difficulty that startup exchanges have in dislodging a dominant exchange. For example, the [[Chicago Board of Trade]] has retained overwhelming dominance of trading in [[US Treasury bond]] futures despite the startup of [[Eurex]] US trading of identical futures contracts. Similarly, the [[Chicago Mercantile Exchange]] has maintained dominance in trading of Eurobond interest rate futures despite a challenge from [[Euronext.Liffe]].