National Stock Exchange
November 3, 2009 by uttoransen
Filed under Finance
National Stock Exchange – With the first ever and completely automated trading floor, and a rigorous management team, the National Stock Exchange in Chicago, formerly known as the Cincinnati Stock Exchange has indeed been a pioneer in the stock marketplace.
History – Founded in 1885, the National Stock Exchange or NSX is an electronic stock exchange located in Chicago, Illinois. Although it was founded in Cincinnati, Ohio, it later moved its headquarters to Chicago in 1995. It was originally named the Cincinnati Stock Exchange, with the name being changed to the National Stock Exchange on November 7, 2003.
Unlike many other exchanges at the time, the National Stock Exchange, or as formerly known Cincinnati Stock Exchange, survived the depression and the war years and flourished in tandem with the U.S. economy.
The National Stock Exchange is stated to handle 20% of all trading in NASDAQ-listed issues. Like all other Stock Exchanges in the US, the National Stock Exchange is regulated by the Securities and Exchange Commission (SEC).
Significant Milestones – In 1976, the National Stock Exchange closed its physical trading floor and became the first completely electronic stock market in the United States of America.
In 1986, the National Stock Exchange introduced the first computerized exchange interface with the Intermarket Trading System or ITS, which allowed its members to interact electronically with all other markets to get the best possible execution prices for their public consumers.
In 1992, National Stock Exchange led the way to internalization in an electronic, competing specialist exchange environment. This model enabled member firms to provide public customers with lower cost and higher quality executions.
In 1993, the National Stock Exchange was the first exchange to build up a complete electronic order audit trail for regulatory purposes.
In 1998, National Stock Exchange created the first market data revenue-sharing program, which has saved the industry more than $100 million annually.
In the fourth quarter of 2006, a major transformation that had begun a year earlier with a the development of an completely new business plan for the National Stock Exchange, led to the launch of a brand new state-of-the-art technology platform, NSX BLADE.
In 2006, the exchange also demutualized into a for-profit organization and along with the equity investments that followed from six leading Wall Street firms and ECNs, all led the way towards the rise of a new National Stock Exchange.
Services – The national Stock Exchange services include the trade execution, the quote dissemination, and the trade reporting. It partakes in the national market system and plans for the exchange, OTC securities, listed securities, as well as in the trading system. Just like an auction market, the company’s national securities trading system automatically performs auctions of stocks, provides trading system, and enables its members to interact electronically with other stock exchanges.
Trading Hours – The normal trading hours for the National Stock Exchange are between 9:30 am EST and 06:30pm EST. The National Stock Exchange trades on all days of the week from Monday to Friday, except for Saturdays and Sundays and Public holidays which are listed on the Exchange’s website.
