Philadelphia Stock Exchange
From MarketsWiki
| Philadelphia Stock Exchange | |
| |
| Founded | 1790 |
|---|---|
| Headquarters | Philadelphia, USA |
| Key People | Sandy Frucher, chairman and CEO; John F. Wallace, vice-chairman (president, Wallace Securities Corp.) |
| Products | Cash equities, options and currencies |
| Web site | http://www.phlx.com/ |
The Philadelphia Stock Exchange (PHLX or Phil-Ex) incorporates the oldest US stock exchange and the third-largest options market in the US, ranking as the world's 12th-largest derivatives platform by volume in 2006[1].
The electronic exchange lists more than 7,000 stocks, more than 2,500 equity options, 17 index options, and multiple currency pairs.
The member-owned exchange announced an agreed $652m cash sale to the Nasdaq on November 7, 2007, expected to close in the first quarter of 2008.
Contents |
History
| This page is sponsored by... |
 |
The Philadelphia Stock Exchange, the oldest stock exchange in the U.S., was founded in 1790, two years prior to the New York Stock Exchange[2].
After World War II, the Philadelphia Stock Exchange began to reach out beyond Philadelphia. Philadelphia merged with the Baltimore Stock Exchange in 1949, and with the Washington Stock Exchange in 1953. Through associate membership agreements, Philadelphia expanded its trading base to Pittsburgh, Boston, and Montreal.
Philadelphia was among the first exchanges to catch the wave of electronic trading. In 1975, the Philadelphia Stock Exchange introduced an order routing and execution system for stocks called PACE® (Philadelphia Automated Communication and Execution system). It was a computer-to-computer system that provided electronic execution of stock orders instantly. Brokers could use the system to buy or sell any of the most actively traded stocks in the United States, while receiving the best quoted price on any of the U.S. exchanges.
By April, 1988, the Exchange utilized the electronic trading technology first used on the equity floor to build a new system to accommodate options trading. The Automated Options Market (AUTOM®) system allowed electronic delivery of options orders from member firms to the Exchange floor, automatic execution of certain orders and electronic confirmation of execution.
The Philadelphia Stock Exchange began offering currency options in 1982, and by 1988, they were trading in volumes as high as $4 billion per day in underlying value. Buoyed by the success of currency options, the Philadelphia Board of Trade® (PBOT®) was established in 1985 to trade currency futures and other futures products.
It became the first floor-based stock exchange to transform its structure from that of a seat-based, cooperative institution to a share-based for profit company in January 2004.
Its business in recent years has been driven by stock options. Index options, stocks and currency products are also listed. PHLX recently hired bankers to pursue a potential acquisition or initial public stock offering. That was achieved in November 2007 as NASDAQ announced an agreement to purchase PHLX.
Product Development
The PHLX's Gold/Silver SectorSM (XAU) is the most actively traded, industry-based index option offered by any exchange, serving as a widely quoted benchmark of the gold and silver mining industry. Similarly, the PHLX's Oil Service SectorSM (OSX), Semiconductor SectorSM (SOX), KBW Bank Index (BKX) and Utility SectorSM (UTY) are well-established as leading industry indicators.
News
On Nov. 7, 2007, NASDAQ announced that it had entered into a definitive agreement to acquire the Philadelphia Stock Exchange (PHLX), with the purpose of significantly diversifying NASDAQ’s product portfolio by providing NASDAQ with an option trading platform. Under the terms of the agreement, NASDAQ would pay $652 million in cash consideration for the capital stock of the Philadelphia Stock Exchange. This transaction is expected to close in the first quarter of 2008 and to become accretive to 2009 earnings. The board of directors of each company unanimously approved the transaction and it is subject to other customary approvals.[3]
References
- ↑ Volume growth accelerates. FIA. Retrieved on February 11, 2008.
- ↑ History. PHLX. Retrieved on February 11, 2008.
- ↑ "NASDAQ to Acquire Philadelphia Stock Exchange". NASDAQ. Retrieved on Nov. 7, 2007.
