Wikipedia

NYSE Chicago

(Redirected fromChicago Stock Exchange)

NYSE Chicago,formerly known as theChicago Stock Exchange(CHX), is astock exchangeinChicago,Illinois,US.The exchange is a national securities exchange andself-regulatory organization,which operates under the oversight of theU.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]

Chicago Stock Exchange
TypeSubsidiary
LocationChicago, Illinois, United States
Coordinates41°52′33″N87°37′55″W/ 41.87583°N 87.63194°W/41.87583; -87.63194
FoundedMarch 21, 1882(1882-03-21)
OwnerIntercontinental Exchange
Key peopleJohn Kerin (CEO)
CurrencyUSD
Volume200,174,951 (November 17, 2015)
Websitewww.chx.com

History

edit

1882–1900

edit
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 Henrotinwas 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 ofAdler & 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 theArt 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

edit

In July 1914, the Exchange closed as a result ofWorld 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 ofSt. Louis,ClevelandandMinneapolis/St. Paulto form the Midwest Stock Exchange, which kept its headquarters in Chicago. In 1959, theNew Orleans Stock Exchangebecame 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 fullyautomated order execution.In 1987, the CHX implemented programs to tradeNasdaqsecurities.[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 tradingexchange-traded funds(ETFs).[citation needed]

2001–present

edit
The Chicago Stock Exchange/LaSalle Train Station as viewed from the Sears 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., aDelaware 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 byBank 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]

TheNational Stock Exchangeceased trading operations on May 30, 2014, bringing the number of active stock exchanges in theUnited Statesto 11. WroteBloomberg,that left "just one public exchange, Chicago Stock Exchange Inc., that isn't ownedBats,Nasdaq OMX GrouporIntercontinentalExchange 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 byBank of America,E-Trade,Goldman SachsandJPMorgan Chase.[13]The acquisition is valued to be less than $100 million.[14]However, the deal was questioned by then-candidateDonald Trumpduring his2016 presidential campaign.[15]Moreover, CongressmanRobert Pittengerurged theUnited States Department of the Treasuryto 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

edit

The CHX Matching System was designed for fullelectronic 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 theSecurities and Exchange Commissionin October 2015 and athorough reviewfrom theFederal 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

edit

Notes

edit
  1. ^"Chicago Stock Exchange to be renamed NYSE Chicago".www.spglobal.com.Archivedfrom the original on January 11, 2023.RetrievedDecember 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.RetrievedDecember 11,2020.
  3. ^abcPierce, 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.ISBN9780226668420.Archivedfrom the original on January 11, 2023.RetrievedAugust 6,2015.
  4. ^"Chicago Stock Exchange".WTTW. October 24, 2011.Archivedfrom the original on January 11, 2023.RetrievedAugust 6,2015.
  5. ^Martin, Andrew D."100 Years Ago, The New York Stock Exchange Experienced A 4-Month Long Circuit Breaker".Business Insider.Archivedfrom the original on January 11, 2023.RetrievedAugust 31,2020.
  6. ^"Intermarket Trading System Plan".www.sec.gov.Archivedfrom the original on October 16, 2020.RetrievedAugust 31,2020.
  7. ^"SEC Policy Statement: SRO Automated Systems".www.sec.gov.Archivedfrom the original on October 6, 2020.RetrievedAugust 31,2020.
  8. ^Feder, Barnaby J. (July 8, 1993)."Chicago (Midwest) Market Dusts Off Its Original Name".The New York Times.Archivedfrom the original on January 11, 2023.RetrievedNovember 7,2007.
  9. ^"SEC.gov | Unfair Exchange: The State of America's Stock Markets".www.sec.gov.Archivedfrom the original on October 17, 2020.RetrievedAugust 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.Archivedfrom the original on January 11, 2023.RetrievedAugust 31,2020.
  11. ^"Form 10-K".www.sec.gov.Archivedfrom the original on April 8, 2022.RetrievedAugust 31,2020.
  12. ^Mamudi, Sam (May 2, 2014)."National Stock Exchange Files With SEC to Halt Operations".Bloomberg.com.Bloomberg News.Archivedfrom the original on June 2, 2014.RetrievedJune 15,2014.
  13. ^Egan, Matt (February 5, 2016)."China group to buy Chicago Stock Exchange".CNN Money.Chicago.Archivedfrom the original on February 6, 2016.RetrievedFebruary 5,2016.
  14. ^Hu, Fox (February 5, 2016)."Obscure Chinese Firm Dives Into $22 Trillion U.S. Market".Bloomberg News.Chicago.Archivedfrom the original on February 6, 2016.RetrievedFebruary 6,2016.
  15. ^abcLockett, Hudson; Weinland, Don (August 10, 2017)."SEC pushes back on Chinese-led takeover of Chicago Stock exchange".Financial Times.Archivedfrom the original on December 10, 2022.RetrievedAugust 10,2017.
  16. ^Horowitz, Julia (February 15, 2018)."A Chinese takeover of the Chicago Stock Exchange just got blocked".CNN.Archivedfrom the original on October 23, 2020.RetrievedAugust 3,2020.
  17. ^"Matching System".CHX.Archivedfrom the original on September 1, 2015.RetrievedAugust 6,2015.
  18. ^"Chicago Stock Exchange"ArchivedNovember 19, 2015, at theWayback Machine,StockMarkets.Com. Accessed August 6, 2015.
  19. ^"CHX SNAP".Archivedfrom the original on November 18, 2015.RetrievedNovember 17,2015.
  20. ^"NYSE Chicago"(PDF).

References

edit
edit
Wikimedia Commons has media related toChicago Stock Exchange.
Retrieved from "https://en.wikipedia.org/w/index.php?title=NYSE_Chicago&oldid=1258830294"