Chicago Curb Exchange

Chicago Curb Exchange

Company type	Regulated securities marketplace
Industry	Financial services
Founded	1927
Defunct	1938
Headquarters	Chicago , United States
Key people	Frank L. Schreiner (first president), August C. Babize (president at trading start), Adolph Kempner (president 1928–1929), Clarence G. Troup (president 1931)
Products	Securities trading for emerging and smaller enterprises

The Chicago Curb Exchange, sometimes referred to as the Chicago Market, functioned as a regulated securities marketplace and curb exchange situated in Chicago, Illinois.

Establishment and Initial Operations

Formally incorporated in 1927 and officially organized on February 6, 1928, the Chicago Curb Exchange was created to facilitate trading in securities issued by emerging and smaller enterprises. Frank L. Schreiner, affiliated with the Chicago Board of Trade, was appointed as the inaugural president. John G. McCarthy served as treasurer, while James A. Cavanaugh took on the role of secretary. The board of directors featured Schreiner alongside E. D. Norton and E. J. Kuh Jr. Trading activities began in July 1928 under the presidency of August C. Babize.

Adolph Kempner, a founding broker who later assumed the presidency from 1928 to 1929, played a significant role in positioning the curb exchange as a rival to the Chicago Stock Exchange. The exchange experienced rapid growth early on, culminating in a peak trading volume of 6,645,635 shares during 1929, including a single session that saw 175,800 shares exchanged.

In 1930, disputes emerged concerning dual listings, notably involving the Walgreen Company and Standard Oil Company of Indiana, which prompted demands for the resignation of three governors associated with the securities market development at the Chicago Board of Trade.

By 1931, leadership under president Clarence G. Troup introduced initiatives to align corporate financing objectives with investor safeguards, thereby strengthening regulatory practices amid shifting market dynamics.

After the SEC was established, the curb exchange sought relief from newly imposed regulations and requested that the SEC investigate accusations of market manipulation related to Paducah Cooperage Company stock. In February 1935, the SEC broadened its investigation to include a formal hearing on the curb exchange’s exemption petition, signaling heightened regulatory attention during this era.

Downturn and Termination

Financial losses were reported by the exchange amounting to $17,931 in 1934, $17,271 in 1935, and $6,329 in 1936. In 1936, revenues totaled $23,358 against expenses of $29,597, with year-end net assets comprising $74,652 held in cash and government securities. That year saw approval for fourteen new listings plus four additional ones; membership transfers occurred at prices of $1,000 and $1,250 respectively. The exchange broadened its operational jurisdiction by securing exemptions in Texas, Kentucky, Oklahoma, and Kansas. Membership reached 82 by January 1937. During 1937, trading volume included 560,584 shares along with bonds valued at $26,000 par. By February 1938 membership had decreased to 77 members—many maintaining activity on other exchanges—with trading conducted from leased premises within the Postal Telegraph Building.

On February 4, 1938, an overwhelming majority of members (65-0) resolved to dissolve the exchange and petition the SEC to revoke its national securities exchange registration. The rationale cited dwindling membership numbers, persistent financial deficits over four consecutive years, and insufficient trading volumes to maintain viable operations. The SEC granted approval for cancellation on February 26; formal withdrawal occurred two days later. Trading transitioned to cash-only mode on March 7 before concluding entirely at 2 p.m. on March 15 when the board formally disbanded. After ten years of operation, the exchange closed quietly without any formal ceremonies.

See also

• List of former stock exchanges in the Americas
• Chicago Stock Exchange