Meaning: Arthur Levitt, a former chairman of the U.S. Securities and Exchange Commission, made this statement in the context of the increasing use of the Internet for securities trading. The quote highlights the potential limitations and risks associated with relying solely on the internet for accessing and trading in the securities market.

The Internet has undoubtedly revolutionized the way individuals and institutions access and interact with the securities market. With online trading platforms, investors can place orders, monitor market developments, and access a wealth of financial information with unprecedented ease and convenience. This direct access to the market may create the perception that one has a seamless and immediate connection to the securities market. However, Levitt's cautionary statement serves as a reminder that this perception may not always align with the reality of the market's complexities and potential vulnerabilities.

The first part of the quote, "Although the Internet makes it seem as if you have a direct connection to the securities market, you don't," underscores the distinction between the perception of direct access and the underlying infrastructure and processes that support securities trading. The internet serves as a conduit for transmitting orders and market data, but it is not immune to disruptions. Levitt's point is that the internet is an intermediary, and the actual functioning of the securities market involves a multitude of interconnected systems, participants, and regulatory frameworks.

The subsequent phrases, "Lines may clog; systems may break; orders may back-up," elucidate the potential risks and challenges associated with relying solely on the internet for securities trading. "Lines may clog" suggests the possibility of network congestion or latency, which can affect the speed and reliability of order execution. In a highly dynamic market environment, even small delays can have significant implications for the execution of trades and the realization of investment objectives. "Systems may break" alludes to the technical infrastructure that underpins online trading platforms and market connectivity. This encompasses not only the systems operated by brokerage firms and trading venues but also the broader telecommunications and internet infrastructure that facilitates the transmission of data and orders. The phrase "orders may back-up" points to the potential for congestion and delays in order processing, which can occur during periods of high trading volumes or in the event of technical malfunctions.

Levitt's concluding attribution of the quote to himself as a "Public Servant" is significant in that it emphasizes the regulatory and investor protection considerations that underpin his message. As a former regulator, Levitt is keenly aware of the importance of maintaining fair, orderly, and efficient markets, as well as safeguarding the interests of investors. The quote can thus be seen as a call for vigilance and a reminder of the broader market structure and risks that transcend the seemingly seamless interface of the internet.

In summary, Arthur Levitt's quote serves as a thought-provoking reflection on the intersection of technology and the securities market. It encourages investors and market participants to maintain a nuanced understanding of the opportunities and limitations associated with internet-based securities trading. By acknowledging the potential for disruptions, congestion, and order processing challenges, the quote underscores the importance of robust infrastructure, risk management, and regulatory oversight in ensuring the integrity and resilience of the securities market.