National Stock Exchange Defined
The National Stock Exchange, better known by its abbreviation "NSX," was the first stock exchange in the United States to transition to 100% electronic trading. , the NSX merged with the NYSE, rebranding itself as the NYSE National. Today, the NYSE National operates as part of the NYSE Pillar trading platform, which seeks to combine several NYSE-affiliated markets into a comprehensive order fulfillment system. Today, the National Stock Exchange is part of the NYSE, where it is known as the NYSE National. In 2017, the NSX was acquired by the New York Stock Exchange (NYSE) and is now known as the NYSE National. The NSX was founded in Ohio in 1885, at which time it was known as the Cincinnati Stock Exchange. For much of its early history, it was known for its listings of railroad companies, banks, and insurance firms.
What Is the National Stock Exchange?
The National Stock Exchange, better known by its abbreviation "NSX," was the first stock exchange in the United States to transition to 100% electronic trading. In 2017, the NSX was acquired by the New York Stock Exchange (NYSE) and is now known as the NYSE National.
Understanding the National Stock Exchange
The NSX was founded in Ohio in 1885, at which time it was known as the Cincinnati Stock Exchange. For much of its early history, it was known for its listings of railroad companies, banks, and insurance firms.
The Cincinnati Stock Exchange was an early adopter of computerized trading technologies, closing down its physical trading floor in 1976 in favor of fully electronic trading. In 1995, it relocated to Chicago, Illinois, and then changed its name to the National Stock Exchange in 2003. It later moved again, this time to New Jersey.
In May 2014, the NSX ceased trading due to low transaction volumes, but it was able to reopen a year and a half later. These problems persisted, however, with the NSX announcing in Dec. 2016 that it would once again need to pause trading.
At the time of its 2016 announcement, the NSX accounted for roughly 0.02% of volume in United States equity markets. In an effort to reclaim market share, the NSX merged with the NYSE, rebranding itself as the NYSE National.
Today, the NYSE National operates as part of the NYSE Pillar trading platform, which seeks to combine several NYSE-affiliated markets into a comprehensive order fulfillment system. Through this new platform, the NYSE National resumed trading in the second quarter of 2018.
Real World Example of the National Stock Exchange
The term "National Stock Exchange" can also refer to stock markets in India or Australia. In India, the National Stock Exchange (NSE) is the nation's most prominent stock exchange.
In Australia, the National Stock Exchange is that nation's second largest stock exchange. Also known as NSX, it specializes in growth companies.
Related terms:
Cincinnati Stock Exchange (CSE)
The Cincinnati Stock Exchange (CSE) was a securities exchange which operated from 1895 until 2003. read more
Equity Market
An equity market is a market in which shares are issued and traded, either through exchanges or over-the-counter markets. read more
Growth Company
A growth company is any firm whose business generates significant positive cash flows or earnings, which increase at faster rates than the overall economy. read more
Last-Sale Reporting
Last-sale reporting is the submission of details about the quantity and price of a stock trade to Nasdaq within 90 seconds of the trade's close. read more
Market Share
Market share shows the size of a company in relation to its market and its competitors by comparing the company’s sales to total industry sales. read more
National Stock Exchange of India Limited (NSE)
The National Stock Exchange—India's largest financial market—ranks fourth in the world by equity trading volume. read more
NYSE Amex Equities
NYSE Amex Equities is an American stock exchange best known for trading small and micro cap stocks among various other investment vehicles. read more
New York Stock Exchange (NYSE)
The New York Stock Exchange, located in New York City, is the world's largest equities-based exchange in terms of total market capitalization. read more
Pacific Exchange (PCX)
The now-defunct Pacific Exchange (PCX) was one of four U.S. exchanges to trade equity options and the first to implement an electronic trading system. read more