NYSE Chicago facts for kids
| Chicago Stock Exchange | |
|---|---|
Quick facts for kids  |
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| Type | Subsidiary |
| Location | Chicago, Illinois, United States |
| Coordinates | 41°52′33″N 87°37′55″W / 41.87583°N 87.63194°W |
| Founded | March 21, 1882 |
| Owner | Intercontinental Exchange |
| Key people | John Kerin (CEO) |
| Currency | USD |
| Volume | 200,174,951 (November 17, 2015) |
NYSE Chicago, also called the Chicago Stock Exchange (CHX) before, is a place in Chicago, Illinois, US where people buy and sell stocks and bonds. It's a national exchange that follows rules set by the U.S. Securities and Exchange Commission (SEC). The SEC is a government group that watches over stock markets. A company called Intercontinental Exchange (ICE) bought CHX in July 2018. The exchange then changed its name to NYSE Chicago in February 2019.
Contents
History of the Chicago Stock Exchange
Early Years (1882–1900)
The Chicago Stock Exchange officially started on March 21, 1882. At that time, a man named Charles Henrotin was chosen as its first leader. In April 1882, the exchange found a place to open its offices at 115 Dearborn Street. They sold 750 memberships that year.
On May 15, 1882, the Chicago Stock Exchange opened to the public. Charles Henrotin and his business friends helped make it popular. In 1894, the exchange moved its trading area to a new building. This building was designed by famous architects, Adler & Sullivan. The old Chicago Stock Exchange building was taken down in 1972. But its original trading floor and main entrance are now at the Art Institute of Chicago. The exchange grew a lot in the late 1880s. Buying and selling stocks and bonds increased, bringing in good profits.
Growth and Challenges (1901–2000)
In July 1914, the Exchange closed because of World War I. It stayed closed until December 11 of that year. In October 1915, the way stocks were priced changed. They started using dollars instead of percentages. On April 26, 1920, the Chicago Stock Exchange Stock Clearing Corporation was created. This helped manage stock trades.
On October 29, 1929, the stock market crashed. This was a very hard time for the Chicago Stock Exchange. It was also a difficult period for all stock markets. In 1949, the CHX joined with other exchanges. These were from St. Louis, Cleveland, and Minneapolis/St. Paul. Together, they formed the Midwest Stock Exchange. Its main office stayed in Chicago. Later, in 1959, the New Orleans Stock Exchange also joined.
In April 1978, the Chicago Stock Exchange started a new system. It was called the Intermarket Trading System (ITS). This system helped send orders between different exchanges. It made sure customers got the best price for their trades. In the 1980s, the Chicago Stock Exchange made many tech upgrades. In 1982, they launched the MAX system. This made CHX one of the first exchanges with automated trading. In 1987, CHX began trading Nasdaq stocks. In the 1990s, the Exchange became strong again. In 1993, it changed its name back to the Chicago Stock Exchange. This showed its connection to Chicago's financial world. In 1997, the exchange started trading exchange-traded funds (ETFs).
Modern Era (2001–present)
The new millennium brought big changes. In 2005, the SEC allowed CHX to change its ownership. It went from being owned by its members to being a public company. This means it could have stockholders. The CHX now works as a part of CHX Holdings, Inc. Later in 2005, CHX started using its Electronic Book trading platform. This was a step towards its New Trading Model.
In 2006, big banks like Bank of America Corporation and Goldman, Sachs & Co. invested in CHX. That same year, CHX finished moving to its New Trading Model platform. This was called the CHX Matching System. On May 30, 2014, the National Stock Exchange closed. This left 11 active stock exchanges in the United States.
In February 2016, a Chinese investment group tried to buy CHX Holdings, Inc. This deal was worth less than $100 million. However, the sale was stopped by the government in February 2018. The parent company of the New York Stock Exchange, Intercontinental Exchange Inc., then agreed to buy CHX. CHX will continue to operate as a national securities exchange.
How Trading Works at CHX
The CHX Matching System is made for electronic trade matching. This means computers match buy and sell orders. Companies do not need to be listed on CHX to be traded there. SEC rules allow CHX to trade stocks listed on other exchanges.
In 2016, CHX introduced a new product called CHX SNAP. SNAP stands for "Sub-second Non-displayed Auction Process." The SEC approved it in October 2015. CHX SNAP helps with large trades of securities. It also helps make sure that all traders have a fair chance.
See also
- Chicago Stock Exchange Arch
- Chicago Curb Exchange
- List of stock exchanges in the Americas
- List of stock exchange mergers in the Americas
