San Francisco Stock and Bond Exchange

San Francisco Stock and Bond Exchange
Type Regional stock exchange
Location San Francisco, California, United States
Founded 1882 in San Francisco
Closed 1957 (merged)
Currency United States dollar

The San Francisco Stock and Bond Exchange was a regional stock exchange based in San Francisco, California, United States.[1][2] Founded in 1882,[3] in 1928 the exchange purchased and began using the name San Francisco Stock Exchange, while the old San Francisco Stock Exchange was renamed the San Francisco Mining Exchange.[4] The San Francisco Curb Exchange was absorbed by the San Francisco Stock Exchange in 1938.[5] In 1956 the San Francisco Stock Exchange merged with the Los Angeles Oil Exchange to create the Pacific Coast Stock Exchange.[3]

History

Formation

The San Francisco Stock and Bond Exchange was founded in 1882[3] on September 18, in a basement in San Francisco.[6][7] The exchange was founded as the San Francisco Stock Exchange. On September 18, twenty-five brokers met in the basement of Wohl & Rollitz, which was at 403 California Street in the old Fireman's Fund Insurance Building. Of that number, 19 signed the charter and deposited $50 to purchase memberships. The first president was John Perry Jr.[7]

It had nineteen charter members, who called it "the Local Security Board." The first year of business, transactions totaled $9,490,621.[6] After the World War I stock market shutdown that started in July 1914, the San Francisco Stock and Bond Exchange reopened on December 1, 1914 for trading for bonds under restrictions, three days after the NYSE reopened.[8]

Negotiations with SF Stock Exchange

By April 23, 1927, the San Francisco Stock and Bond Exchanges and the San Francisco Stock Exchange, mining, were negotiating over the establishment of the former as purely listed market, and the latter as a curb exchange. To prevent naming confusion, there were talks to have the SF Stock Exchange be named the San Francisco Curb Exchange or Association, with the name 'San Francisco Stock Exchange' to become the property of the Stock and Bond Exchange. Upon the ratification of the agreement, there would be ninety days for corporations with stocks "on the unlisted board [of the San Francisco Stock and Bond Exchange] to meet listing requirements or to be transferred to the Curb board, where "another probationary period will ensue in which Curb requirements may be met." It was said these curb requirements would be "substantially" those of the New York Curb.[9]

1927-1928: Restructuring

In August 1927, the exchange adopted new regulations for its listed securities.[1] The following month, the San Francisco exchange broke a business record for itself, when it had weekly trading total $16,936,019.[2]

In December 1927, the exchange's monthly business surpassed $100,000,000 for the first time.[10] Also that month, the exchange voted for reorganization and division of business in the exchange,[11] with the exchange expanding.[12]

On December 9, 1927, it was reported that the agreement to re-organize with the San Francisco Stock Exchange had been authorized, with changes to take place immediately. Also, the old building occupied by the San Francisco Stock Exchange was put for sale, with the exchange to be renamed the San Francisco Mining Exchange.[13] In the agreement, the San Francisco Mining Exchange agreed to deal solely in mining securities, with the name San Francisco Stock Exchange sold to the Stock and Bond Exchange.[4]

The new San Francisco Curb Exchange was expected to begin operation soon after the start of 1928, and would be the third security markets in the city. According to the agreement, all members of the SF Stock and Bond Exchange would hold memberships in both the new Stock Exchange and the new curb exchange. The Curb would have an authorized 100 charter members, 67 from the Stock and Bond Exchange, and the remaining available for sale.[13] The new Curb Exchange was created to take over the "splendid plant on Bush Street of the old Mining Exchange." The Curb Exchange started activities on January 2, 1928, using the unlisted securities formerly on the SF Stock and Bond Exchange.[4]

As Pacific Coast division

As of late 1928, Sidney L. Schwartz was president of the San Francisco Stock Exchange, which was the renamed San Francisco Stock and Bond Exchange.[4] The San Francisco Curb Exchange was absorbed by the San Francisco Stock Exchange in 1938.[5]

In 1957, the Los Angeles Oil Exchange (formed in 1899) and the San Francisco Stock and Bond Exchange merged to create the Pacific Coast Stock Exchange,[3] with trading floors maintained in both cities. As of September 15, 1957, the former San Francisco Stock and Bond Exchange was operational as the San Francisco division of the Pacific Coast Stock Exchange.[6]

See also

References

  1. 1 2 "Tightens Exchange Rules; San Francisco Market Adopts New Regulations for Listed Securities.". The New York Times. New York City, New York. August 18, 1927. p. 33. Retrieved April 5, 2017.
  2. 1 2 "Breaks Business Records; San Francisco Exchange Tradings Total $16,936,019 This Week.". The New York Times. New York City, New York. September 16, 1927. Retrieved April 5, 2017.
  3. 1 2 3 4 "Trading Floor's Final Day At Pacific Stock Exchange". The New York Times by Reuters. May 26, 2001. Retrieved April 5, 2017.
  4. 1 2 3 4 "Stock Sales Jump in San Francisco; President of Exchange Shows Increase of l60 Per Cent in Turnover in Year.". New York Times. November 4, 1928. Retrieved June 1, 2017.
  5. 1 2 San Francisco in the 1930s: The WPA Guide to the City by the Bay, retrieved June 2, 2017
  6. 1 2 3 E. Davies, Lawrence (September 15, 1957). "Pacific Exchange In Diamond Jubilee; Pacific Exchange is 75 This Week - Closed by Earthquake". New York Times. Retrieved June 1, 2017.
  7. 1 2 Arthur, Lindsay (October 10, 1955), San Francisco's Big Board Grew Out Of A Basement Meeting, San Francisco Call-Bulletin
  8. ↑ Bryan, Taylor (August 1, 2014). "Desperate Traders Managed To Keep Trading During The World War I Stock Market Shutdown". Business Insider. Retrieved April 5, 2017.
  9. ↑ "Curb Market Planned for San Francisco; Stock and Bond Exchange and Stock Exchange Consider New Arrangement.". New York Times. April 23, 1927. Retrieved June 1, 2017.
  10. ↑ "Trading in San Francisco; Month's Business on Exchange Passes $100,000,000 for First Time.". The New York Times. New York City, New York. December 23, 1927. Retrieved April 5, 2017.
  11. ↑ "New Curb Market in San Francisco; Stock and Bond Exchange Votes for Reorganization and Division of Business.". The New York Times. New York City, New York. December 9, 1927.
  12. ↑ "San Francisco Exchange Expands.". The New York Times. New York City, New York. December 4, 1927. Retrieved April 5, 2017.
  13. 1 2 "New Curb Market for San Francisco; Stock and Bond Exchange Votes for Reorganization and Division of Business.". New York Times. December 9, 1927. Retrieved June 1, 2017.
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