National Stock Exchange
From MarketsWiki
| National Stock Exchange | |
| |
| Founded | 1885 as Cincinnati Stock Exchange |
|---|---|
| Headquarters | Jersey City, NJ |
| Key People | Joseph S. Rizzello |
| Products | full electronic stock trading |
| Web site | http://www.nsx.com |
The National Stock Exchange (NSX) is a fully-automated electronic marketplace best known for its global connectivity and listed Exchange Traded Funds (ETFs). The exchange recently altered its marketplace focus after a scandal at the top caused a rupture with former partner the Chicago Board Options Exchange (CBOE).
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Contents |
History
The National Stock Exchange began as the Cincinnati Stock Exchange (CSX) in the late 19th century and survived unchanged for almost 100 years until 1980, when it was converted to the United States's first all electronic exchange.[1] Six years later the CSX joined the Chicago Board Options Exchange via a membership deal[2] and introduced its first fully-automated Intermarket Trading System (ITS), linking its members to all possible markets.
In 1995 the CSX shifted its headquarters from Cinicnnati to Chicago and continued developing its electronic-trading technology until it changed its name to the National Stock Exchange in 2003.[3] The exchange still maintains some operations in Chicago but its main operations base since 2006 has been Jersey City, NJ.
The Turning Point
Just two years after the name change, in 2005, NSX took a heavy blow when the Securities and Exchange Commission ruled following an investigation that President and Chief Executive Officer David Colker had not enforced rules guaranteeing customer orders better prices than own-account orders.[4] Colker was fined $100,000 and banned from future involvement in NSX regulation and the NSX was ordered by the SEC to "separate its regulatory and governance functions".
A year earlier, in 2004, CBOE and NSX had terminated their financial agreements and CBOE said it would surrender certificates of proprietary membership in the NSX for cash totalling $11 million over four years.[5] The now-decoupled NSX demutualized into a for-profit company in 2006 with investments by several bulge-bracket Wall Street financiers and decamped most operations to the east coast. Later that year NSX launched an entirely new grading-technology platform called NSX BLADE(SM).
The National Stock Exchange now appears to be bouncing back from some difficult years, posting record trading volumes on its signature ETF listings in January 2008 that more than doubled the same figure a year earlier.[6] ETFs' January trading volume on the NSX rose from $664.5 billion in January 2007 to $2.23 trillion a year later.
Products and Services
Specializes in facilitating trading for members in all ETFs available to electronically and provides data ranked by top-25 issuers, top-10 ETNs and top-10 funds.[7] Also lists the 670+ ETFs used to collect the ETF ranking data.[8]
Key People
Chairman of the Board Joseph S. Rizzello replaced Colker as CEO of the NSX in October 2006[9] and has remained in both posts. He joined the NSX board and its executive committee in 2002 and worked as NSX special adviser from 2004 to September 2006, when he took over as chairman. He was previously managing director at Pershing LLC.
References
- ↑ About NSX - History. NSX. Retrieved on May 9, 2008.
- ↑ CBOE, Cincinnati Exchange to link. Chicago Sun-Times. Retrieved on May 9, 2008.
- ↑ Notice of Filing and Immediate Effectiveness of Proposed Rule Change by The Cincinnati Stock Exchange. Securities and Exchange Comission. Retrieved on May 9, 2008.
- ↑ National Stock Exchange Settles With SEC. Marketwatch. Retrieved on May 9, 2008.
- ↑ Investments in affiliates. CBOE Annual Report 2006. Retrieved on May 9, 2008.
- ↑ NSX Announces Record January ETF Trading Volume Surpasses $2.2 Trillion. NSX. Retrieved on May 9, 2008.
- ↑ ETF Data Report. NSX. Retrieved on May 9, 2008.
- ↑ Monthly ETF Reports. NSX. Retrieved on May 9, 2008.
- ↑ National Stock Exchange Appoints Joseph S. Rizzello as CEO of the Exchange. NSX. Retrieved on May 9, 2008.
