NYSE American

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NYSE American
NYSE American logo.png
Founded 2017
Headquarters New York, NY, USA
Key People Stacey Cunningham, COO
Website www.nyse.com/markets/nyse-american

NYSE American, (formerly NYSE MKT, and formerly NYSE Amex) is a U.S. cash equities market for listing and trading small-cap and mid-cap growth companies. The all-electronic market, which falls under the NYSE Group of exchanges operated by parent company Intercontinental Exchange, offers electronic designated market makers for each listed company and NYSE Arca's price-time execution model. It features trading in more than 8,000 securities and incorporates a 350-microsecond delay on all orders, proprietary data feeds and outbound routing.[1]

History

The exchange traces its history back to the 1840s, with the organization of a consortium of brokers (known as "curbstone brokers" because they operated in the street) who specialized in small and newly created enterprises. The curb market grew and matured, eventually adopting listing standards (and moving indoors) under the name "New York Curb Market." In 1929, its name was changed to the New York Curb Exchange and, in 1953, to the American Stock Exchange (AMEX).[2]

In 1993, AMEX became a pioneer in what would become a revolution in the securities world with the introduction of the first exchange traded fund (ETF), Standard & Poor’s Depositary Receipts (SPDRs).

In 1998, AMEX merged with NASDAQ, but in 2004 the company regained its independence.

NYSE predecessor NYSE Euronext acquired the exchange on Oct. 1, 2008. NYSE Euronext initially rebranded the exchange post-merger, calling it "NYSE Alternext U.S. LLC" but received approval from the U.S. Securities and Exchange Commission (SEC) in March of 2009 to change it back to NYSE Amex.[3]

NYSE MKT (as AMEX) was acquired by NYSE Euronext in 2008 for $260 million to help boost its options, exchange traded funds and cash equities businesses. NYSE closed the old Amex equities trading floor and moved it to the NYSE trading floor in 2009.[4]

The company changed its name to NYSE MKT in May 2010. NYSE Amex Options, however, retained its name.[5]

NYSE American is currently a division of the Intercontinental Exchange Group Inc., which purchased the exchange as part of the NYSE Euronext acquisition in November 2013. NYSE American and its sister equity options exchange, NYSE American Options, (formerly NYSE Amex Options), along with the New York Stock Exchange, NYSE Arca, NYSE Arca Options and NYSE National all fall under ICE's securities market division called NYSE Group.

Starting in the second quarter of 2017, NYSE closed the NYSE MKT floor, and all trading on NYSE MKT, which listed and traded around 250 small-cap companies, was automated. Both names were changed to NYSE American and NYSE American Options in January 2017. NYSE American adoped a 350-microsecond delay in trading on its market to match a competing market approach from IEX.[6][7]

NYSE American Facts

  • Each NYSE American-listed company has an e-DMM with quoting obligations
  • A 350 microsecond delay mechanism allows resting midpoint and pegged orders to re-price to changes in the NBBO before newly entered orders arrive
  • Trading in all 8,000+ NMS securities id done in a fully electronic manner, including electronic auctions in NYSE American securities
  • An intentional 350-microsecond delay on all order path messages, proprietary data feeds and outbound routing to allow resting pegged orders to re-price before new incoming orders arrive. Trades and quotes, however, will be reported to the Securities Information Processor (SIP) without an added delay
  • Discretionary pegged orders, which peg to the near side of the protected best bid and offer (PBBO) with discretion to trade up to the midpoint of the PBBO under stable quote conditions. The order, like other non-displayed pegged orders, will automatically adjust its working price without delay as the PBBO changes
  • Full depth of book market data is available, subject to the 350 microsecond delay. [8]

References

  1. NYSE American. NYSE.
  2. American Stock Exchange Historical Timeline. NYSE.
  3. Press Release. NYSE Euronext.
  4. NYSE MKT stock exchange to end floor trading - regulatory filing. Reuters.
  5. NYSE Amex LLC to be renamed NYSE MKT LLC. NYSE Euronext.
  6. NYSE MKT to end floor trading for small stocks. The Financial Times.
  7. The New York Stock Exchange is slowing down trading for a key market. Business Insider.
  8. NYSE American Factsheet. NYSE.