Problems Facing the Firm
Quadriserv Firm aimed at creating a centralized marketplace where the investors could effectively lend as well as borrow securities. In other words, the goal of this company was to modernize the United States equity securities lending market. Nonetheless, the brokerage firms resisted Quadriserv Firm’s innovations. Quadriserv faced a dilemma in deciding whether to make the changes to its systems so as to preserve a number of advantages, which the brokerage firms had in the prevailing marketplace and facilitate their participation in the electronic marketplace, which it was creating or not (Cohen & Malloy, 2011). The changes to Quadriserv Firm’ ...
