NYSE Chicago

Last updated

Chicago Stock Exchange
Chikagskaia fondovaia birzha 1.jpg
Type Subsidiary
LocationChicago, Illinois, United States
Coordinates 41°52′33″N87°37′55″W / 41.87583°N 87.63194°W / 41.87583; -87.63194
FoundedMarch 21, 1882 (1882-03-21)
Owner Intercontinental Exchange
Key peopleJohn Kerin (CEO)
Currency USD
Volume200,174,951 (November 17, 2015)
Website www.chx.com

NYSE Chicago, formerly known as the Chicago Stock Exchange (CHX), is a stock exchange in Chicago, Illinois, US. The exchange is a national securities exchange and self-regulatory organization, which operates under the oversight of the U.S. Securities and Exchange Commission (SEC). Intercontinental Exchange (ICE) acquired CHX in July 2018 and the exchange rebranded as NYSE Chicago in February 2019. [1] [2]

Contents

History

1882–1900

Old Chicago Stock Exchange Building, ca. 1894 Oldchicagostockexchange.jpg
Old Chicago Stock Exchange Building, ca. 1894

The Chicago Stock Exchange was founded in a formal meeting on March 21, 1882. At this time, Charles Henrotin was elected the chairman and president. In April that year, a lease was taken out at 115 Dearborn Street for the location of the exchange and during that year 750 memberships were sold. [3] On May 15, 1882, the Chicago Stock Exchange officially became public and opened its offices, with Henrotin being the first to promote it along with some business associates. [3]

In 1894, the Chicago Stock Exchange moved its trading floor to the old Chicago Stock Exchange building, designed by the firm of Adler & Sullivan, which was located at corner of Washington and LaSalle streets. The old Chicago Stock Exchange building was demolished in 1972, but the original trading floor and main entrance can now be found at the Art Institute of Chicago. [4] The exchange began to flourish significantly in the late 1880s, with the rate of transactions of stocks and bonds increasing and earning them big profits. [3]

1901–2000

In July 1914, the Exchange closed as a result of World War I, and remained closed until December 11. [5] In October 1915, the basis of quoting and trading in stocks changed from percent to par value to dollars.[ citation needed ] On April 26, 1920, the Chicago Stock Exchange Stock Clearing Corporation was established. On October 29, 1929, the stock market crashed, resulting in a very difficult time period for the Chicago Stock Exchange, and the stock market in general.[ citation needed ]

In 1949, the CHX merged with the exchanges of St. Louis, Cleveland and Minneapolis/St. Paul to form the Midwest Stock Exchange, which kept its headquarters in Chicago. In 1959, the New Orleans Stock Exchange became part of the Midwest Stock Exchange, and in the early 1960s the Midwest Stock Exchange Service Corporation was established to provide centralized accounting for member firms.[ citation needed ]

In April 1978, the Chicago Stock Exchange launched an Intermarket Trading System (ITS), a system that allowed orders to be sent from one exchange to another to ensure that customers received the best execution available. [6] In the 1980s, the Chicago Stock Exchange made several technological advancements to improve trading. In 1982, the CHX launched the MAX system, which allowed CHX to be one of the first stock exchanges to provide fully automated order execution. In 1987, the CHX implemented programs to trade Nasdaq securities. [7]

In the 1990s, the Exchange had a rebirth, and in 1993 changed its name back to the Chicago Stock Exchange, [8] reflecting its roots and identity within the Chicago financial community. In 1997 the Chicago Stock Exchange began trading exchange-traded funds (ETFs).[ citation needed ]

2001–present

The Chicago Stock Exchange/LaSalle Train Station as viewed from the Willis Tower in July 2008 MidwestStockEx08.jpg
The Chicago Stock Exchange/LaSalle Train Station as viewed from the Willis Tower in July 2008

At the beginning of the new millennium, several major changes occurred. In 2005, the SEC approved a change of the ownership structure of the CHX from a not-for-profit, member-owned company to a for-profit, public stockholder-owned corporation (demutualization). [9] The CHX now operates as a direct and wholly owned subsidiary of CHX Holdings, Inc., a Delaware corporation. [10] Later in 2005, the CHX implemented the Electronic Book trading platform; the predecessor technology of the New Trading Model's Matching System. In 2006, the Exchange announced regulatory and shareholder approval of an investment in CHX by Bank of America Corporation, Bear Stearns (acquired by JP Morgan Chase in 2008), E*TRADE FINANCIAL Corporation, and Goldman, Sachs & Co. In the same year, the CHX announced that it had completed the migration to the New Trading Model platform (the CHX Matching System). [11]

The National Stock Exchange ceased trading operations on May 30, 2014, bringing the number of active stock exchanges in the United States to 11. Wrote Bloomberg, that left "just one public exchange, Chicago Stock Exchange Inc., that isn't owned Bats, Nasdaq OMX Group or IntercontinentalExchange Group Inc." [12]

On February 5, 2016, Chongqing Casin Enterprise Group, a Chinese-led investment group, entered into a definitive agreement to acquire CHX Holdings, Inc., the parent corporation of the Chicago Stock Exchange, for an undisclosed amount, which is subject to regulatory approvals. The privately held Casin Group was founded in 1997. A minority ownership position is held by Bank of America, E-Trade, Goldman Sachs and JPMorgan Chase. [13] The acquisition is valued to be less than $100 million. [14] However, the deal was questioned by then-candidate Donald Trump during his 2016 presidential campaign. [15] Moreover, Congressman Robert Pittenger urged the United States Department of the Treasury to look into the Casin Group's background. [15] By August 2017, the deal was still pending, with the U.S. Securities and Exchange Commission expressing reservations. [15] The sale was blocked by the government in February 2018. [16]

The New York Stock Exchange's parent company, Intercontinental Exchange Inc., agreed to acquire the 136-year-old market for an undisclosed amount. CHX will continue to operate as a registered national securities exchange till the end of 2019 when CHX will cease to exist.

Trading on the CHX

The CHX Matching System was designed for full electronic trade matching. [17] Publicly traded companies do not need to be listed on the CHX to be traded at CHX; SEC rules allow the CHX to trade stocks listed on other exchanges. [18]

In 2016, CHX rolled out its on-demand auction product, CHX SNAP [19] (Sub-second Non-displayed Auction Process), which received regulatory approval [20] from the Securities and Exchange Commission in October 2015 and a thorough review from the Federal Reserve Bank of Chicago. CHX SNAP is designed to facilitate bulk trading of securities on a lit market and to minimize speed and information advantages enjoyed by only a few market participants.

See also

Notes

  1. ↑ "Chicago Stock Exchange to be renamed NYSE Chicago". www.spglobal.com. Archived from the original on January 11, 2023. Retrieved December 11, 2020.
  2. ↑ "Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Exchange's Price List Related to Colocation Services" (PDF). Archived (PDF) from the original on January 11, 2023. Retrieved December 11, 2020.
  3. 1 2 3 Pierce, Bessie Louise (September 1, 2007). A History of Chicago, Volume III: The Rise of a Modern City, 1871–1893. University of Chicago Press. p. 233. ISBN   9780226668420. Archived from the original on January 11, 2023. Retrieved August 6, 2015.
  4. ↑ "Chicago Stock Exchange". WTTW. October 24, 2011. Archived from the original on January 11, 2023. Retrieved August 6, 2015.
  5. ↑ Martin, Andrew D. "100 Years Ago, The New York Stock Exchange Experienced A 4-Month Long Circuit Breaker". Business Insider. Archived from the original on January 11, 2023. Retrieved August 31, 2020.
  6. ↑ "Intermarket Trading System Plan". www.sec.gov. Archived from the original on October 16, 2020. Retrieved August 31, 2020.
  7. ↑ "SEC Policy Statement: SRO Automated Systems". www.sec.gov. Archived from the original on October 6, 2020. Retrieved August 31, 2020.
  8. ↑ Feder, Barnaby J. (July 8, 1993). "Chicago (Midwest) Market Dusts Off Its Original Name". The New York Times . Archived from the original on January 11, 2023. Retrieved November 7, 2007.
  9. ↑ "SEC.gov | Unfair Exchange: The State of America's Stock Markets". www.sec.gov. Archived from the original on October 17, 2020. Retrieved August 31, 2020.
  10. ↑ "Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reflect Name Changes of the Exchange and its Direct Parent Company and To Amend Certain Corporate Governance Provisions". Federal Register. November 1, 2018. Archived from the original on January 11, 2023. Retrieved August 31, 2020.
  11. ↑ "Form 10-K". www.sec.gov. Archived from the original on April 8, 2022. Retrieved August 31, 2020.
  12. ↑ Mamudi, Sam (May 2, 2014). "National Stock Exchange Files With SEC to Halt Operations". Bloomberg.com . Bloomberg News. Archived from the original on June 2, 2014. Retrieved June 15, 2014.
  13. ↑ Egan, Matt (February 5, 2016). "China group to buy Chicago Stock Exchange". CNN Money. Chicago. Archived from the original on February 6, 2016. Retrieved February 5, 2016.
  14. ↑ Hu, Fox (February 5, 2016). "Obscure Chinese Firm Dives Into $22 Trillion U.S. Market". Bloomberg News. Chicago. Archived from the original on February 6, 2016. Retrieved February 6, 2016.
  15. 1 2 3 Lockett, Hudson; Weinland, Don (August 10, 2017). "SEC pushes back on Chinese-led takeover of Chicago Stock exchange" . Financial Times. Archived from the original on December 10, 2022. Retrieved August 10, 2017.
  16. ↑ Horowitz, Julia (February 15, 2018). "A Chinese takeover of the Chicago Stock Exchange just got blocked". CNN . Archived from the original on October 23, 2020. Retrieved August 3, 2020.
  17. ↑ "Matching System". CHX. Archived from the original on September 1, 2015. Retrieved August 6, 2015.
  18. ↑ "Chicago Stock Exchange" Archived November 19, 2015, at the Wayback Machine , StockMarkets.Com. Accessed August 6, 2015.
  19. ↑ "CHX SNAP". Archived from the original on November 18, 2015. Retrieved November 17, 2015.
  20. ↑ "NYSE Chicago" (PDF).

Related Research Articles

<span class="mw-page-title-main">Nasdaq</span> American stock exchange

The Nasdaq Stock Market is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange. The exchange platform is owned by Nasdaq, Inc., which also owns the Nasdaq Nordic stock market network and several U.S.-based stock and options exchanges.

<span class="mw-page-title-main">New York Stock Exchange</span> American stock exchange

The New York Stock Exchange is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalization.

<span class="mw-page-title-main">Euronext</span> European financial services company

Euronext N.V. is a pan-European bourse that provides trading and post-trade services for a range of financial instruments.

The National Stock Exchange (NSX) is an electronic stock exchange based in Jersey City, New Jersey. It was founded March 1885 in Cincinnati, Ohio, as the Cincinnati Stock Exchange.

An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars. The list of assets that each ETF owns, as well as their weightings, is posted on the website of the issuer daily, or quarterly in the case of active non-transparent ETFs. Many ETFs provide some level of diversification compared to owning an individual stock.

<span class="mw-page-title-main">Securities Exchange Act of 1934</span> 1934 U.S. legislation establishing rules and regulatory bodies for financial markets

The Securities Exchange Act of 1934 is a law governing the secondary trading of securities in the United States of America. A landmark of wide-ranging legislation, the Act of '34 and related statutes form the basis of regulation of the financial markets and their participants in the United States. The 1934 Act also established the Securities and Exchange Commission (SEC), the agency primarily responsible for enforcement of United States federal securities law.

The Depository Trust & Clearing Corporation (DTCC) is an American post-trade financial services company providing clearing and settlement services to the financial markets. It performs the exchange of securities on behalf of buyers and sellers and functions as a central securities depository by providing central custody of securities.

An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges. An ECN is generally an electronic system that widely disseminates orders entered by market makers to third parties and permits the orders to be executed against in whole or in part. The primary products that are traded on ECNs are stocks and currencies. ECNs are generally passive computer-driven networks that internally match limit orders and charge a very small per share transaction fee.

NYSE Euronext, Inc. was a transatlantic multinational financial services corporation that operated multiple securities exchanges, including the New York Stock Exchange, Euronext and NYSE Arca. NYSE merged with Archipelago Holdings on March 7, 2006, forming NYSE Group, Inc. On April 4, 2007, NYSE Group, Inc. merged with Euronext N.V. to form the first global equities exchange, with its headquarters in Lower Manhattan. The corporation was then acquired by Intercontinental Exchange, which subsequently spun off Euronext.

<span class="mw-page-title-main">Options Clearing Corporation</span> Financial services business

Options Clearing Corporation (OCC) is a United States clearing house based in Chicago. It specializes in equity derivatives clearing, providing central counterparty (CCP) clearing and settlement services to 16 exchanges. Started by Wayne Luthringshausen and carried on by Michael Cahill. Its instruments include options, financial and commodity futures, security futures, and securities lending transactions.

<span class="mw-page-title-main">Intercontinental Exchange</span> American exchange and clearing house company

Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada and Europe, the Liffe futures exchanges in Europe, the New York Stock Exchange, equity options exchanges and OTC energy, credit and equity markets.

A regional stock exchange is a term used in the United States to describe stock exchanges that operate outside of the country's main financial center in New York City. A regional stock exchange operates in the trading of listed and over-the-counter (OTC) equities under the SEC's Unlisted Trading Privileges (UTP) rule.

The Financial Industry Regulatory Authority (FINRA) is a private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD) as well as to the member regulation, enforcement, and arbitration operations of the New York Stock Exchange. The U.S. government agency that acts as the ultimate regulator of the U.S. securities industry, including FINRA, is the U.S. Securities and Exchange Commission (SEC).

The Consolidated Tape Association (CTA) oversees the Securities Information Processor that disseminates real-time trade and quote information in New York Stock Exchange (NYSE) and American Stock Exchange (AMEX) listed securities. It is currently chaired by Emily Kasparov of the Chicago Stock Exchange, the first woman and the youngest chair elected to the position.

The National Market System (NMS) is a regulatory mechanism that governs the operations of securities trading in the United States. Its primary focus is ensuring transparency and full disclosure regarding stock price quotations and trade executions. It was initiated in 1975, when, in the Securities Acts Amendments of 1975, Congress directed the Securities and Exchange Commission (SEC) to use its authority to facilitate the establishment of a national market system. The system has been updated periodically, for example with the Regulation NMS in 2005 which took into account technological innovations and other market changes.

<span class="mw-page-title-main">2010 flash crash</span> U.S. stock market crash lasting 36 minutes in May 6, 2010

The May 6, 2010, flash crash, also known as the crash of 2:45 or simply the flash crash, was a United States trillion-dollar flash crash which started at 2:32 p.m. EDT and lasted for approximately 36 minutes.

<span class="mw-page-title-main">IEX</span> U.S.-based stock exchange

Investors Exchange (IEX) is a stock exchange in the United States. It was founded in 2012 in order to mitigate the effects of high-frequency trading. IEX was launched as a national securities exchange in September 2016. On October 24, 2017, it received regulatory approval from the U.S. Securities and Exchange Commission (SEC) to list companies. IEX listed its first public company, Interactive Brokers, on October 5, 2018. The exchange said that companies would be able to list for free for the first five years, before a flat annual rate of $50,000. On September 23, 2019, it announced it was leaving its listing business.

<span class="mw-page-title-main">Securities market participants (United States)</span>

Securities market participants in the United States include corporations and governments issuing securities, persons and corporations buying and selling a security, the broker-dealers and exchanges which facilitate such trading, banks which safe keep assets, and regulators who monitor the markets' activities. Investors buy and sell through broker-dealers and have their assets retained by either their executing broker-dealer, a custodian bank or a prime broker. These transactions take place in the environment of equity and equity options exchanges, regulated by the U.S. Securities and Exchange Commission (SEC), or derivative exchanges, regulated by the Commodity Futures Trading Commission (CFTC). For transactions involving stocks and bonds, transfer agents assure that the ownership in each transaction is properly assigned to and held on behalf of each investor.

<span class="mw-page-title-main">Citadel Securities</span> American market making firm

Citadel Securities LLC is an American market making firm headquartered in Miami. It is one of the largest market makers in the world, and is active in more than 50 countries. It is the largest designated market maker on the New York Stock Exchange. Citadel Securities is a separate entity from the hedge fund Citadel LLC, although both were founded and are majority owned by American hedge fund manager Kenneth C. Griffin. Citadel Securities is expected to eventually move its headquarters from Chicago to Miami, having bought land there to build its new headquarters.

References

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.