NYSE MKT

NYSE MKT LLC
Type Stock exchange
Location New York City, New York, United States
Founded 1908 (1908) (as New York Curb Market Agency)
Owner Intercontinental Exchange
Currency United States Dollar
Website NYSE MKT

NYSE MKT LLC, formerly known as the American Stock Exchange (AMEX), is an American stock exchange situated in New York City, New York. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange.[1]

NYSE Euronext acquired AMEX on October 1, 2008,[2] with AMEX integrated with the Alternext European small-cap exchange and renamed the NYSE Alternext U.S.[3] 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]

History

The Curb market

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.”[5]

The exchange grew out of the loosely organized curb market of curbstone brokers on Broad Street in Manhattan. Efforts to organize and standardize the market started early in the 20th century under Emanuel S. Mendels and Carl H. Pforzheimer.[6] The curb brokers had been kicked out of the Mills Building front by 1907, and had moved to the pavement outside the Blair Building where 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.[7] As of 1907, the curb market operated starting at 10'clock in the morning, each day except Sundays, until a gong at 3 o'clock. 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.[7]

Organizing and 'Curb list'

As of 1907, E. S. Mendels gave the brokers rules "by right of seniority," but the curb brokers intentionally avoided organizing. According to the Times, 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.[7] However, in 1908 the New York Curb Market Agency was established, which developed appropriate trading rules for curbstone brokers, organized by Mendels.[8] The informal Curb Association formed in 1910 to weed out undesirables.[5] The curb exchange was for years at odds with the New York Stock Exchange (NYSE), or "Big Board," operating several buildings away. Explained the New York Times in 1910, the Big Board looked at the curb as "a trading place for 'cats and dogs.'"[9] 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.[9] In 1911, Mendels and his advisers drew up a constitution and formed the New York Curb Market Association, which can be considered the first formal constitution of American Stock Exchange.[8]

1920s-1940s: Move indoors

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, then pauses to auction a puppy-dog. It is like nothing else under the astonishing sky that is its only roof.” After a group of Curb brokers formed a real estate company to design a building, Starrett & Van Vleck designed the new exchange building on Greenwich Street in Lower Manhattan between Thames and Rector, at 86 Trinity Place. It opened in 1921,[5] and the curbstone brokers moved indoors on June 27, 1921. In 1929, the New York Curb Market changed its name to the New York Curb Exchange. Within no time, the Curb Exchange became the leading international stock market, listing more foreign issues than all other U.S. securities markets combined.

George Rea was approached about the position of president of the New York Curb Exchange in 1939.[10] He was unanimously elected[10] as the first paid president in the history of the Curb Exchange. He was paid $25,000 per year and held the position for 3 years before offering his resignation in 1942.[11] He left the position having "done such a good job that there is virtually no need for a full-time successor."[12]

Modernization as the American Stock Exchange

In 1953 the Curb Exchange was renamed the American Stock Exchange. The exchange was shaken by a scandal in 1961, and in 1962 began a reorganization.[13] Its reputation recently damaged by charges of mismanagement, in 1962 the American Stock Exchange named Edwin Etherington its president. Writes CNN, he and executive vice president Paul Kolton were "tapped in 1962 to clean up and reinvigorate the scandal-plagued American Stock Exchange."[14] At AMEX for five years, he was credited with improving opportunities for minorities and women. In 1971, Johnson Products Company became the first African American-owned company to be listed on the American Stock Exchange.[15]

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,[13] 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.[16][17] In November 1972, Kolton was named as the exchange's first chief executive officer and its first salaried top executive.[18] As chairman, Kolton oversaw the introduction of options trading. Kolton opposed the idea of a merger with the New York Stock Exchange while 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".[17] Kolton announced in July 1977 that he would be leaving his position at the American Exchange in November of that year.[19]

In 1977, Thomas Peterffy purchased a seat on the American Stock Exchange and played a role in developing the electronic trading of securities. Peterffy created a major stir among traders by introducing handheld computers onto the trading floor in the early 1980s.[20][21]

Richard F. Syron joined the American Stock Exchange as CEO in 1994 held that post for five years, which included its merger in 1998 into the National Association of Securities Dealers.

NYSE merger

As of 2003, AMEX was the only U.S. stock market to permit the transmission of buy and sell orders through hand signals.[22]

On January 17, 2008, NYSE Euronext announced it would acquire the AMEX for $260 million in stock.[23] Before the closing of the acquisition, NYSE Euronext announced that the AMEX would be integrated with the Alternext European small-cap exchange and renamed the NYSE Alternext U.S.[24] 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 at 11 Wall Street.[4] 90 years after its 1921 opening, the old New York Curb Market building was empty but remained standing.[5] 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]

Products

See also

References

  1. ↑ Klein, Maury (2001). Rainbow's End: The Crash of 1929. Oxford University Press. ISBN 0-19-513516-4.
  2. ↑ "NYSE Euronext Completes Acquisition of American Stock Exchange". New York Stock Exchange. October 1, 2008.
  3. ↑ "Notice of Upcoming NYSE System Changes To Support the NYSE/Amex Integration (NYSE Alternext U.S.)". New York Stock Exchange. July 7, 2008.
  4. 1 2 3 4 5 "NYSE Amex Equities Information". New York Stock Exchange.
  5. 1 2 3 4 When Stocks Came in From the Cold (September 30, 2010). "Christopher Gray". The New York Times. New York City, New York.
  6. ↑
  7. 1 2 3 "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. New York City, New York. August 17, 1907.
  8. 1 2 http://abcnewspapers.com/index.php?option=com_content&task=view&id=11281 New York Curb Market Association
  9. 1 2 "Curb Bars Stocks Big Board Dropped; Securities Shut Out by Abolition of Unlisted Department Are Homeless Now.". The New York Times. New York City, New York. April 2, 1901. p. 1.
  10. 1 2 "G. P. Rea New Head of Curb Exchange". The New York Times. April 21, 1939. Retrieved 2008-04-08.
  11. ↑ "Rea Quits as Curb Exchange Head Effective June 30, After 3 Years". The New York Times. April 8, 1942. Retrieved 2008-04-08.
  12. ↑ "First Is Last". Time. July 13, 1942. Retrieved 2008-04-08.
  13. 1 2 Terry Robards (June 6, 1971). "Half Century Off the Curb". The New York Times. New York City, New York.
  14. ↑ http://money.cnn.com/2001/01/12/markets/q_kandel/
  15. ↑ "The Father of Hair Care". Johnson Products. Archived from the original on 2008-03-31. Retrieved 2008-06-19.
  16. ↑ 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.
  17. 1 2 (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.
  18. ↑ Staff (November 3, 1972). "Amex Formally Elects Paul Kolton as Chairman, Chief Executive Officer". The Wall Street Journal. Retrieved October 30, 2010.
  19. ↑ Staff (July 17, 1977). "Paul Kolton Leaving Amex". (via Dow Jones Service (The Pittsburgh Press (via Google News)). Retrieved July 18, 2012.
  20. ↑ "Thomas Peterffy". Forbes. 2016. Retrieved 2016-06-16.
  21. ↑ "Twenty Billionaires Who Started With Nothing - Living the American Dream - Businessweek (#17)". Bloomberg Businessweek. 2010-12-06. Retrieved 2016-06-16.
  22. ↑ Larry Harris, Trading and Exchanges, Oxford University Press US: 2003, page 104, ISBN 0-19-514470-8, ISBN 978-0-19-514470-3
  23. ↑ "NYSE Euronext Completes Acquisition of American Stock Exchange". New York Stock Exchange. October 1, 2008.
  24. ↑ "Notice of Upcoming NYSE System Changes To Support the NYSE/Amex Integration (NYSE Alternext U.S.)". New York Stock Exchange. July 7, 2008.

Further reading

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