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Nasdaq PHLX

posted onJanuary 5, 2020

The Philadelphia Stock Exchange (PHLX), now known as Nasdaq PHLX, dates its founding to 1790, making it the oldest organised stock exchange in the U.S. and the third-oldest globally, after the Amsterdam Exchange (1602) and Paris Bourse (1724).  

In fact, the earliest known record of securities quotations in the United States is the "Price Current of Stocks," printed on three-by-six inch paper and signed by Samuel Anderson, Stock Broker, at Number 104 Chestnut Street, Philadelphia. It is dated April 10, 1792.

PHLX provided an efficient source of capital for needed public works, such as transportation infrastructure, utility systems, canals and real estate development. It also helped the nation raise funds to establish new commercial banks and insurance companies. Starting in 1846, the telegraph allowed investors quick access to stock quotes and news, bringing a new openness to the business of the Philadelphia Stock Exchange. 

PHLX closed for four months in 1914 because of World War I market turmoil. It also closed during the 1933 Bank Holiday declared by President Franklin D. Roosevelt. Following World War II, the Exchange began to reach out beyond Philadelphia, growing through mergers. PHLX merged with the Baltimore Stock Exchange in 1949, and with the Washington (D.C.) Stock Exchange in 1953.

(An example of Greek Revival architecture, the Merchants' Exchange Building served as the commercial center of nineteenth-century Philadelphia after its completion in 1834.)

Philadelphia Stock Exchange

Through associate membership agreements, PHLX expanded its trading base to Pittsburgh, Boston, and Montreal. From 1953- 1976 the exchange was called the Philadelphia-Baltimore-Washington Stock Exchange (PBW). The increasing use of computers during the 1960's and 1970's changed every business, and PHLX was among the first exchanges to engage in electronic trading.

In September, 1990, the PHLX became the first exchange in the world to offer around-the-clock trading by bridging the gap between the night session and the early morning hours. 

The introduction of Sector Index Options in the 1990s, consisting of indexes such as the Gold/Silver Sector (XAU), KBW Bank Index (BKX), Utility Sector (UTY), and Insurance Index (KIX),  made PHLX an industry leader in sectors index options trading by allowing investors to use options trading for diverse industries and commodities.

The exchange grew even more through the creation of UCOM (United Currency Options Market) in November 1994. UCOM was the first market in the world to offer customisable currency options in an exchange environment,  including choice of exercise price,  selection of currency pairs and expiration dates of up to two years.

In the twenty first century PHLX introduced Exchange Traded Funds (ETF's), NASDAQ listed stocks and making order flow arrangements with Electronic Communication Networks (ECN's).

In a major move in 2006, the exchange halted the traditional floor trading that started in 1790. A year later, NASDAQ purchased the exchange for $652 million. This resulted in its becoming the largest electronic stock market, listing over 3,000 firms, and the third largest options market domestically. 

As part of the transaction, which closed in July 2008, Nasdaq also acquired a futures market operated by the Philadelphia Board of Trade, an equities business, and the Stock Clearing Corporation of Philadelphia. 

During its more than 200 years of history, PHLX, as one of North America’s primary marketplaces has held on to its determination to provide an efficient and transparent service to its listed companies, brokers and investors, encompassing new ideas and solutions.

PHLX is also expanding Nasdaq's foothold in machine intelligence, mobile technology, and the cloud, providing innovative toolkits to investors.


Key people:
Adena Friedman (CEO & President)
Ms. Friedman assumed the role of President and Chief Executive Officer of Nasdaq on January 1, 2017 and is a member of the Board of Directors. Ms. Friedman brings more than 20 years of industry leadership and expertise and is credited with significant contributions that shaped Nasdaq’s strategic transformation to a leading global exchange and technology solutions company with operations on six continents.

Phone:+1 215-496-5000 
2929 Walnut St, Philadelphia, PA 19104, USA

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