Jump to content

NYSE American

From Wikipedia, the free encyclopedia

NYSE American
TheAmerican Stock Exchange Building
TypeStock exchange
LocationNew York City, New York, United States
Founded1908;116 years ago(1908)(as New York Curb Market Agency)
OwnerIntercontinental Exchange
CurrencyUnited States dollar
WebsiteNYSE American

NYSE American,formerly known as theAmerican Stock Exchange(AMEX), and more recently asNYSE MKT,is an Americanstock exchangesituated in New York City. AMEX was previously amutual organization,owned by its members. Until 1953, it was known as theNew York Curb Exchange.[1]

NYSE Euronextacquired AMEX on October 1, 2008,[2]with AMEX integrated with theAlternextEuropeansmall-capexchange and renamed theNYSE Alternext U.S.[3]In March 2009, NYSE Alternext U.S. was changed toNYSE Amex Equities.On May 10, 2012, NYSE Amex Equities changed its name toNYSE MKT LLC.[4]

Following theSECapproval of competing stock exchangeIEXin 2016, NYSE MKTrebrandedasNYSE Americanand introduced a 350-microsecond delay in trading, referred to as a "speed bump", which is also present on the IEX.[5][6][7]

History

[edit]

The Curb market

[edit]
See also:Curbstone broker
Curb brokers in Wall Street, New York City, 1920, a year before the trading was moved indoors. That year, journalist Edwin C. Hill described the curb trading on lower Broad Street as "a roaring, swirling whirlpool... like nothing else under the astonishing sky that is its only roof."[8]

The exchange grew out of the loosely organizedcurb marketofcurbstone brokersonBroad StreetinManhattan.Efforts to organize and standardize the market started early in the 20th century underEmanuel S. MendelsandCarl H. Pforzheimer.[9]The curb brokers had been kicked out of the Mills Building front by 1907, and had moved to the pavement outside theBlair Buildingwhere cabbies lined up. There they were given a "little domain of asphalt" fenced off by the police on Broad Street between Exchange Place and Beaver Street.[10]As of 1907, the curb market operated starting at 10 AM, each day except Sundays, until a gong at 3 PM. Orders for the purchase and sale of securities were shouted down from the windows of nearby brokerages, with the execution of the sale then shouted back up to the brokerage.[10]

Organizing and 'Curb list'

[edit]

As of 1907, E. S. Mendels gave the brokers rules "by right of seniority", but the curb brokers intentionally avoided organizing. According to theTimes,this came from a general belief that if a curb exchange was organized, the exchange authorities would force members to sell their other exchange memberships.[10]However, in 1908 theNew York Curb Market Agencywas established, which developed appropriate trading rules for curbstone brokers, organized by Mendels.[11]The informalCurb Associationformed in 1910 to weed out undesirables.[8]The curb exchange was for years at odds with theNew York Stock Exchange(NYSE), or "Big Board", operating several buildings away. Explained theNew York Timesin 1910, the Big Board looked at the curb as "a trading place for 'cats and dogs.'"[12]On April 1, 1910, however, when the NYSE abolished its unlisted department, the NYSE stocks "made homeless by the abolition" were "refused domicile" by the curb brokers on Broad Street until they had complied with the "Curb list" of requirements.[12]In 1911, Mendels and his advisers drew up a constitution and formed theNew York Curb Market Association,which can be considered the first formal constitution of American Stock Exchange.[11]

1920s-1940s: Move indoors

[edit]
American Stock Exchange Building,constructed in 1921

In 1920, journalist Edwin C. Hill wrote that the curb exchange on lower Broad Street was a "roaring, swirling whirlpool" that "tears control of a gold-mine from an unlucky operator, and pauses to auction a puppy-dog. It is like nothing else under the astonished sky that is its only roof."[13]After a group of Curb brokers formed a real estate company to design a building,Starrett & Van Vleckdesigned thenew exchange buildingonGreenwich StreetinLower Manhattanbetween Thames and Rector, at 86 Trinity Place. It opened in 1921,[8]and the curbstone brokers moved indoors on June 27, 1921.[14]In 1929, the New York Curb Market changed its name to the New York Curb Exchange.[15]The Curb Exchange soon became the leading international stock market, and according to historianRobert Sobel,"had more individual foreign issues on its list than [...] all other American securities markets combined."[16]

Edward Reid McCormick was the first president of the New York Curb Market Association and is credited with moving the market indoors.[17][18]George Reawas approached about the position of president of the New York Curb Exchange in 1939.[19]He was unanimously elected[19]as the first paid president in the history of the Curb Exchange. He was paid $25,000 per year (equivalent to $548,000 today[20]) and held the position for three years before offering his resignation in 1942.[21]He left the position having "done such a good job that there is virtually no need for a full-time successor."[22]

Modernization as the American Stock Exchange

[edit]

In 1953 the Curb Exchange was renamed the American Stock Exchange.[23]The exchange was shaken by a scandal in 1961, and in 1962 began a reorganization.[24]Its reputation recently damaged by charges of mismanagement, in 1962 the American Stock Exchange namedEdwin Etheringtonits president. WritesCNN,he and executive vice presidentPaul Koltonwere "tapped in 1962 to clean up and reinvigorate the scandal-plagued American Stock Exchange."[25]

As of 1971, it was the second largest stock exchange in the United States. Paul Kolton succeeded Ralph S. Saul as AMEX president on June 17, 1971,[24]making him the first person to be selected from within the exchange to serve as its leader, succeeding Ralph S. Saul, who announced his resignation in March 1971.[26][27]In November 1972, Kolton was named as the exchange's first chief executive officer and its first salaried top executive.[28]As chairman, Kolton oversaw the introduction ofoptions trading.Kolton opposed the idea of a merger with theNew York Stock Exchangewhile he headed the exchange saying that "two independent, viable exchanges are much more likely to be responsive to new pressures and public needs than a single institution".[27]Kolton announced in July 1977 that he would be leaving his position at the American Exchange in November of that year.[29]

In 1977,Thomas Peterffypurchased a seat on the American Stock Exchange. Peterffy created a major stir among traders by introducing handheld computers onto the trading floor in the early 1980s.[30][31]

Introducing ETFs

[edit]

ETFs orexchange-traded fundshad their genesis in 1989 with Index Participation Shares, anS&P 500proxy that traded on the American Stock Exchange and thePhiladelphia Stock Exchange.This product was short-lived after a lawsuit by theChicago Mercantile Exchangewas successful in stopping sales in the United States.[32][33]

In 1990, a similar product, Toronto Index Participation Shares, which tracked the TSE 35 and later the TSE 100 indices, started trading on theToronto Stock Exchange(TSE) in 1990. The popularity of these products led the American Stock Exchange to try to develop something that would satisfy regulations by theU.S. Securities and Exchange Commission.[34]

Nathan Most and Steven Bloom, under the direction of Ivers Riley, designed and developedStandard & Poor's Depositary Receipts(NYSE Arca:SPY), which were introduced in January 1993.[35][36]Known as SPDRs or "Spiders", the fund became the largest ETF in the world. In May 1995,State Street Global Advisorsintroduced theS&P 400MidCap SPDRs (NYSE Arca:MDY).

Barclays,in conjunction withMSCIand Funds Distributor Inc., entered the market in 1996 withWorld Equity Benchmark Shares (WEBS),which becameiSharesMSCI Index Fund Shares. WEBS originally tracked 17MSCIcountry indices managed by the funds' index provider,Morgan Stanley.WEBS were particularly innovative because they gave casual investors easy access to foreign markets. While SPDRs were organized asunit investment trusts,WEBS were set up as amutual fund,the first of their kind.[37][38]

In 1998,State Street Global Advisorsintroduced "SectorSpiders",separate ETFs for each of the sectors of theS&P 500 Index.[39]Also in 1998, the "Dow Diamonds" (NYSE Arca:DIA) were introduced, tracking theDow Jones Industrial Average.In 1999, the influential "cubes" (Nasdaq:QQQ), were launched, with the goal of replicate the price movement of theNASDAQ-100.

TheiSharesline was launched in early 2000. By 2005, it had a 44% market share of ETFassets under management.[40]Barclays Global Investors was sold toBlackRockin 2009.

NYSE merger

[edit]

As of 2003, AMEX was the only U.S. stock market to permit the transmission of buy and sell orders throughhand signals.[41]

In October 2008NYSE Euronextcompleted acquisition of the AMEX for $260 million in stock.[42]Before the closing of the acquisition, NYSE Euronext announced that the AMEX would be integrated with theAlternextEuropeansmall-capexchange and renamed the NYSE Alternext U.S.[3]The American Stock Exchange merged with the New York Stock Exchange (NYSE Euronext) on October 1, 2008.[4]Post merger, the Amex equities business was branded "NYSE Alternext US". As part of the re-branding exercise, NYSE Alternext US was re-branded as NYSE Amex Equities.[4]On December 1, 2008, the Curb Exchange building at 86 Trinity Place was closed, and the Amex Equities trading floor was moved to the NYSE Trading floor at11 Wall Street.[4]90 years after its 1921 opening, the old New York Curb Market building was empty but remained standing.[8]In March 2009, NYSE Alternext U.S. was changed to NYSE Amex Equities. On May 10, 2012, NYSE Amex Equities changed its name to NYSE MKT LLC.[4]

In June 2016, a competing stock exchangeIEX(which operated with a 350-microsecond delay in trading), gained approval from theSEC,despite lobbying protests by the NYSE and other exchanges and trading firms.[43] On July 24, 2017, the NYSE renamed NYSE MKT to NYSE American, and announced plans to introduce its own 350-microsecond "speed bump" in trading on the small and mid-cap company exchange.[5][6][7]

Products

[edit]

Management

[edit]

Past presidents of the American Stock Exchange include:[44]

  • John L. McCormack (1911–1914)
  • Edward R. McCormick (1914–1923)
  • John W. Curtis (1923–1925)
  • David U. Page (1925–1928)
  • William S. Muller (1928–1932)
  • Howard C. Sykes (1932–1934)
  • E. Burd Grubb (1934–1935)
  • Fred C. Moffatt (1935–1939; 1942–1945)
  • George P. Rea (1939–1942)
  • Edwin Posner (1945–1947; January–September, 1962)
  • Edward C. Werle (February–March, 1947)
  • Francis Adams Truslow (1947–1951)
  • Edward T. McCormick (1951–1961)
  • Joseph F. Reilly (1961–1962)
  • Edwin D. Etherington(1962–1966)
  • Ralph S. Saul (1966–1971)
  • Paul Kolton(1971–1973)
  • Richard M. Burdge(1973–1977)
  • Robert J. Birnbaum(1977–1986)
  • Kenneth R. Leibler (1986–1990)[45]

Past chairmen of the American Stock Exchange include:

  • Clarence A. Bettman (1939–1941)
  • Fred C. Moffatt (1941–1945)
  • Edwin Posner (1945–1947; 1962–1965)
  • Edward C. Werle (1947–1950)
  • Mortimer Landsberg (1950–1951)
  • John J. Mann (1951–1956)
  • James R. Dyer (1956–1960)
  • Joseph E. Reilly (1960–1962)
  • David S. Jackson (1965–1968)
  • Macrae Sykes(1968–1969)
  • Frank C. Graham Jr. (1969–1973)
  • Paul Kolton(1973–1978)
  • Arthur Levitt Jr.(1978–1989)
  • James R. Jones(1989–1993)
  • Salvatore F. Sodano (1999-2005)
[edit]
  • The text reads: "On June 27, 1921, the curbstone brokers moved from their outdoor Market on Broad Street to establish on this site the indoor securities market that became the American Stock Exchange."
    The text reads: "On June 27, 1921, the curbstone brokers moved from their outdoor Market on Broad Street to establish on this site the indoor securities market that became the American Stock Exchange."
  • 2004: Vice Adm. Gary Roughead, right, rings the opening bell at the American Stock Exchange, during the 17th Annual Fleet Week in New York
    2004: Vice Adm. Gary Roughead, right, rings the opening bell at the American Stock Exchange, during the 17th Annual Fleet Week in New York
  • Old American Stock Exchange Building 2009
    Old American Stock Exchange Building 2009

See also

[edit]

References

[edit]
  1. ^Klein, Maury (2001).Rainbow's End: The Crash of 1929.Oxford University Press.ISBN0-19-513516-4.
  2. ^"NYSE Euronext Completes Acquisition of American Stock Exchange".New York Stock Exchange.October 1, 2008. Archived fromthe originalon October 8, 2008.RetrievedSeptember 10,2017.
  3. ^ab"Notice of Upcoming NYSE System Changes To Support the NYSE/Amex Integration (NYSE Alternext U.S.)".New York Stock Exchange.July 7, 2008. Archived fromthe originalon September 15, 2008.
  4. ^abcde"NYSE Amex Equities Information".New York Stock Exchange.Archived fromthe originalon March 19, 2011.RetrievedSeptember 10,2017.
  5. ^abMatt, Turner (January 25, 2017)."The New York Stock Exchange is slowing down trading for a key market".Business Insider.Axel Springer SE.RetrievedSeptember 2,2017.
  6. ^abMassa, Annie (July 24, 2017)."NYSE American Opens to Take on Upstart Exchange IEX".Bloomberg News.Bloomberg L.P.RetrievedSeptember 2,2017.
  7. ^abFrank, Chaparro (July 25, 2017)."The New York Stock Exchange is out to crush America's newest stock exchange".Business Insider.Axel Springer SE.RetrievedSeptember 2,2017.
  8. ^abcdGray, Christopher (September 30, 2010)."When Stocks Came in From the Cold".The New York Times.
  9. ^Robert Sobel (2000).The Curbstone Brokers: The Origins of the American Stock Exchange.ISBN9781893122659.RetrievedJanuary 6,2018.
  10. ^abc"Asks Bingham to Oust Curb Brokers; Lawyer Allen Says Open-Air Exchange Is a Public Nuisance and Therefore Illegal. He Cites Many Decisions And Will Press His Contention -- Brokers Forced to Move Many Times Owing to Complaints".The New York Times.August 17, 1907.
  11. ^abhttp://abcnewspapers /index.php?option=com_content&task=view&id=11281New York Curb Market Association
  12. ^ab"Curb Bars Stocks Big Board Dropped; Securities Shut Out by Abolition of Unlisted Department Are Homeless Now".The New York Times.April 2, 1901. p. 1.
  13. ^Munsey's Magazine.Frank A. Munsey Company. 1920. p. 46.RetrievedFebruary 21,2020.
  14. ^Teall, John L. (2012).Financial Trading and Investing.Academic Press. p. 29.ISBN9780123918802.
  15. ^"New York Curb Exchange (Incorporating the New York Curb Market Building), Later known as the American Stock Exchange"(PDF).Landmarks Preservation Commission.June 26, 1912.Archived(PDF)from the original on October 9, 2022.
  16. ^Sobel, Robert (1972).Amex: A History of the American Stock Exchange, 1921-1971.Weybright and Talley. p. 48.ISBN9781893122482.
  17. ^"Edward Reid McCormick, 76, First President of Curb Market".Brooklyn Daily Eagle.November 9, 1954. p. 9.RetrievedSeptember 17,2019.
  18. ^Mary O'Sullivan (September 28, 207). "The Expansion of the U.S. Stock Market, 1885—1930: Historical Facts and Theoretical Fashions". Oxford University Press. p. 509.JSTOR23700715.
  19. ^ab"G. P. Rea New Head of Curb Exchange".The New York Times.April 21, 1939.RetrievedApril 8,2008.
  20. ^1634–1699:McCusker, J. J.(1997).How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States: Addenda et Corrigenda(PDF).American Antiquarian Society.1700–1799:McCusker, J. J.(1992).How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy of the United States(PDF).American Antiquarian Society.1800–present:Federal Reserve Bank of Minneapolis."Consumer Price Index (estimate) 1800–".RetrievedFebruary 29,2024.
  21. ^"Rea Quits as Curb Exchange Head Effective June 30, After 3 Years".The New York Times.April 8, 1942.RetrievedApril 8,2008.
  22. ^"First Is Last".Time.July 13, 1942. Archived fromthe originalon October 14, 2010.RetrievedApril 8,2008.
  23. ^"History of the NASDAQ and American Stock Exchanges".Business Reference Services, Library of Congress.RetrievedFebruary 10,2018.
  24. ^ab Terry Robards (June 6, 1971)."Half Century Off the Curb".The New York Times.
  25. ^"An exceptional character".Money.cnn. January 12, 2001.RetrievedJanuary 6,2018.
  26. ^Rustin, Richard E. (May 14, 1971)."American Board Panel Seen Recommending Kolton, No. 2 Man, as Successor to Saul".The Wall Street Journal.Retrieved October 30, 2010.
  27. ^ab(registration required)Kaplan, Thomas (October 29, 2010)."Paul Kolton, Who Led the American Stock Exchange, Dies at 87".The New York Times.Retrieved October 29, 2010.
  28. ^Staff (November 3, 1972)."Amex Formally Elects Paul Kolton as Chairman, Chief Executive Officer".The Wall Street Journal.Retrieved October 30, 2010.
  29. ^Staff (July 17, 1977)."Paul Kolton Leaving Amex".(viaDow Jones Service) (The Pittsburgh Press(viaGoogle News)). Retrieved July 18, 2012.
  30. ^"Thomas Peterffy".Forbes.2016.RetrievedJune 16,2016.
  31. ^"Twenty Billionaires Who Started With Nothing - Living the American Dream".Bloomberg Businessweek.December 6, 2010.
  32. ^Gastineau, Gary L. (February 14, 2002).The Exchange-Traded Funds Manual.John Wiley & Sons.ISBN978-0-471-21894-4.
  33. ^Berman, David (February 19, 2017)."The Canadian investment idea that busted a mutual-fund monopoly".The Globe and Mail.RetrievedNovember 19,2021.
  34. ^McFeat, Tom (December 29, 2010)."The Rise of the ETF".
  35. ^Carrel, Lawrence (September 9, 2008).ETFs for the Long Run: What They Are, How They Work, and Simple Strategies for Successful Long-Term Investing.John Wiley & Sons.ISBN978-0-470-13894-6.
  36. ^Bayot, Jennifer (December 10, 2004)."Nathan Most Is Dead at 90; Investment Fund Innovator".The New York Times.ISSN0362-4331.RetrievedNovember 19,2021.
  37. ^Wiandt, Jim (2001).Exchange traded funds.Will McClatchy. New York: Wiley.ISBN0-471-22513-4.OCLC50766758.
  38. ^Fabozzi, Frank J. (2018).The Handbook of Financial Instruments.Somerset: John Wiley & Sons, Incorporated.ISBN978-1-119-52296-6.OCLC1037812038.
  39. ^"5 Biggest ETF Companies".Investopedia.RetrievedNovember 19,2021.
  40. ^"ETFs Show Increasing Popularity In First Half of 2005 | PLANSPONSOR".plansponsor.RetrievedNovember 19,2021.
  41. ^Larry Harris,Trading and Exchanges,Oxford University Press US: 2003, page 104,ISBN0-19-514470-8,ISBN978-0-19-514470-3
  42. ^"NYSE Euronext Completes Acquisition of American Stock Exchange".New York Stock Exchange.October 1, 2008. Archived fromthe originalon October 8, 2008.
  43. ^Popper, Nathaniel (June 17, 2016)."IEX Group, Critical of Wall St., Gains Approval for Stock Exchange".The New York Times.RetrievedSeptember 2,2017.
  44. ^Bruchey, Stuart (February 1, 2013).The Modernization of the American Stock Exchange 1971-1989 (Routledge Revivals).Routledge.ISBN978-1-136-45907-8.
  45. ^Eichenwald, Kurt (June 20, 1990)."COMPANY NEWS; President of American Exchange Resigns".The New York Times.ISSN0362-4331.RetrievedFebruary 6,2022.

Further reading

[edit]
  • Sobel, Robert(1970).The Curbstone Brokers: The Origins of the American Stock Exchange.Washington, D.C.: BeardBooks.ISBN1-893122-65-4.
  • Sobel, Robert (1972).AMEX: A History of the American Stock Exchange.Washington, D.C.: BeardBooks.ISBN1-893122-48-4.
[edit]
Wikimedia Commons has media related toCompanies listed on the American Stock Exchange.
Retrieved from "https://en.wikipedia.org/w/index.php?title=NYSE_American&oldid=1248094423"