NYSE and AMEX - Research Paper Example

The New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX) are examples of stock markets that this paper will address. The New York Stock Exchange (NYSE) original name was the New York Stock & Exchange Board at its inception in 1817. The NYSE resides in New York City and stands out as the largest equities-based exchange based on market capitalization in the world and the only exchange operator in the Fortune 500. It also known as the "Big Board” and only became a public entity in 2005 on acquiring the electronic trading exchange Archipelago.

However, in 2007, NYSE merged with the European exchange to establish a parent company called the NYSE Euronext, which operates the NYSE. The merger marked a great step in the global financial markets where most of the NYSE operations are now electronic. Subject, to its rich history, the NYSE attracts majority of the largest and successful companies in the world. Indeed, the NYSE even allows foreign-based corporations to list their shares on the NYSE upon satisfying the listing standards (“NYSE Euronext” 1).

On the other hand, the American Stock Exchange (AMEX) also resides in New York City. Its original name was the New York Curb Exchange until it changed to AMEX in 1953. Initially, members in a mutual organization owned the AMEX. The AMEX attracts many smaller companies who cannot meet NYSE's strict listing and reporting requirements (“ADVFN” 1). As a result, the AMEX stands out as the third largest stock exchange in the U.S by trading volume where it handles approximately 10% of all American trades and comes after NYSE and NASDAQ (“ADVFN” 1).

However, the NYSE Euronext acquired AMEX on October 1, 2008 and its equities changed to NYSE Amex Equities (“NYSE Euronext” 1). The National Association of Securities Dealers (NASD) owns the AMEX but the NYSE Euronext operates it (“ADVFN” 1). The New York Stock Exchange (NYSE) now known as the NYSE Euronext operates global financial markets and provides innovative trading technologies in the financial market. It also offers the largest futures and options trading venues in the world where it provides derivatives on commodities, FX, equities, bonds, interest rates, indices, and swaps.

Specifically, the NYSE deals with U.S equities, European equities, NYSE technologies, global derivatives, exchange trade products, indices, and bonds (“NYSE Euronext” 1). Indeed, the NYSE Technologies are significant in offering high-class transaction, data, and infrastructure management services and solutions across the globe (“NYSE Euronext” 1). Notably some of the corporations that trade with the