Industry Facts: Did You Know?
- There are currently 11 registered stock exchanges operating in the U.S. Cboe operates four of those exchanges - the Cboe BZX Exchange, BYX Exchange, EDGA Exchange, and EDGX Exchange.
- The first stock exchange in the U.S. was the Philadelphia Stock Exchange, founded in 1790.
- The Buttonwood Agreement, which essentially started the New York Stock Exchange, was signed in May 1792 when 24 brokers and merchants met on Wall Street in New York and agreed to allow securities to be traded on a commission basis.
- On an average daily basis, more than $250 billion worth of stock (notional value) is traded on U.S. exchanges, including approximately $50 billion on the Cboe Exchanges.
- On March 13, 1933, the Dow Jones Industrial Average advanced 15.34%, the largest one-day percentage gain in history.
- On October 19, 1987 (also known as Black Monday), the Dow Jones Industrial Average declined 22.61%, the largest one-day percentage loss in history.
- In 2005, the Securities and Exchange Commission, which regulates financial markets, passed Regulation National Market System (Reg NMS) to improve fairness in stock price execution and foster competition among stock trading venues. Reg NMS resulted in a dramatic shift to electronic trading.
- Bats Europe became a registered stock exchange in Europe when it won Recognised Investment Exchange (RIE) status from the UK's Financial Conduct Authority in May 2013.
- The world’s first stock exchange was formed in Antwerp, Belgium in 1531, although stocks were never actually traded there. The first stock exchange to begin to formally trade stocks was the Amsterdam Stock Exchange, founded in 1602.
- One of the earliest speculative bubbles was known in the Netherlands as Tulip Mania, during which tulip prices reached extraordinary highs before a sudden collapse in 1637.
- Shares of the British East India Company fell from £276 in December 1768 to £122 in 1784. The share price collapse became known as the Bengal Bubble.
- In 1986, the London Stock Exchange introduced a sweeping reform, known as “Big Bang,” that included removal of the traditional distinction between jobbers (dealers) and brokers, introduction of competition from banks and foreign institutions, liberalization of commission, and the introduction of the Stock Exchange Automated Quotation system (SEAQ).
- On 27 April 2010, Standard & Poor's downgraded Greece's sovereign credit rating to junk four days after the activation of a €45-billion EU–IMF bailout, triggering the decline of stock markets worldwide and of the Euro's value, and furthering a European sovereign debt crisis.
- Bats Europe launched on 31 October 2008.
- In 2007, the European Commission, which leads financial markets policymaking, passed the Markets in Financial Instruments Directive to improve consumer protection in investment services and foster competition among stock trading venues. MiFID resulted in a dramatic shift to electronic trading and an end to centuries-old monopolies of many national stock exchanges.
- Cboe Europe is currently the largest stock exchange in Europe in terms of market share and notional value traded.
- Data: According to data from the World Federation of Exchanges and Cboe Global Markets.
Sources: Cboe Global Markets, Wall Street Journal, Investopedia