National Stock Exchange (Jersey City, New Jersey)
| Company type | Stock exchange |
|---|---|
| Industry | Financial services |
| Predecessor | Cincinnati Stock Exchange |
| Founded | March 1885 in Cincinnati, Ohio, United States |
| Headquarters | Jersey City , United States |
Area served | United States |
Key people | David Harris (former CEO) |
| Products | Electronic stock trading platform |
| Parent | New York Stock Exchange (since 2017) |
The National Stock Exchange (NSX) operates as a fully electronic stock exchange with its main office situated in Jersey City, New Jersey. Originally established in Cincinnati, Ohio, in March 1885 under the name Cincinnati Stock Exchange, it evolved into a completely electronic trading venue by 1976. The exchange moved its headquarters to Chicago in 1995 and adopted the National Stock Exchange name in 2003. After undergoing demutualization in 2006, the NSX shifted its base to Jersey City.
In 2011, the CBOE Stock Exchange acquired NSX but continued to run both exchanges independently. Trading on NSX was halted on February 1, 2017, following its purchase by the New York Stock Exchange, before resuming on May 21, 2018.
Initial transformations
The exchange began as the Cincinnati Stock Exchange in March 1885 and transitioned to an all-electronic platform by 1976. It relocated to Chicago in 1995 and rebranded itself as the National Stock Exchange in November 2003. Initially owned by its members, NSX demutualized in 2006 and subsequently moved its headquarters to Jersey City.
In September 2011, the CBOE Stock Exchange entered into an agreement to acquire NSX, finalizing the deal in December while preserving the separate identities and operations of both exchanges. Following this acquisition, NSX continued to operate out of Jersey City.
Shutdown during 2014–2015
In May 2014, NSX altered its fee structure by implementing charges on both sides of trades for securities priced at $1 or more, diverging from conventional industry standards that typically charge one side and rebate the other. Under CEO David Harris's leadership, the exchange suspended trading as of May 30, 2014. Despite this suspension, NSX maintained its registration as a national securities exchange and self-regulatory organization with all existing rules remaining effective. This closure brought the count of active U.S. stock exchanges down to eleven after the recent cessation of operations at the CBOE Stock Exchange. Bloomberg highlighted that only the Chicago Stock Exchange remained independently owned without affiliation to groups such as Bats, Nasdaq OMX, or IntercontinentalExchange. On February 24, 2015, ownership transferred to National Stock Exchange Holdings, a private company. Trading activities recommenced on December 22, 2015.
Acquisition by NYSE
The New York Stock Exchange announced intentions to purchase NSX subject to SEC approval. Consequently, NSX halted trading on February 1, 2017, with plans for relaunching on NYSE’s Pillar platform.
After being acquired, NSX was rebranded as "NYSE National." An SEC filing dated January 12, 2018, detailed rule modifications facilitating NYSE National’s planned reactivation during Q2 2018 via Pillar. Operations resumed on May 21, 2018. Distinct from other NYSE exchanges, NYSE National applies a taker-maker pricing approach that provides rebates for liquidity providers instead of compensating order flow.
Earlier exchanges using the NSX name
Two previous exchanges named National Stock Exchange operated out of New York City. The first existed for seven months until September 1869. The second was affiliated with the New York Mercantile Exchange and functioned from March 7, 1962, until January 31, 1975.
See also
- List of stock exchanges
- List of stock exchanges in the Americas
- List of stock exchange mergers in the Americas
References
External links
- Regarding the Pillar Trading platform: