NYSE Chicago

File:oldchicagostockexchange.jpg

The Chicago Stock Exchange was founded in a formal meeting on March 21, 1882. At this time, Charles Henrotin was elected the chairman and president. In April that year, a lease was taken out at 115 Dearborn Street for the location of the exchange and during that year 750 memberships were sold. On May 15, 1882, the Chicago Stock Exchange officially became public and opened its offices, with Henrotin being the first to promote it along with some business associates.{{cite book|last1=Pierce|first1=Bessie Louise|title=A History of Chicago, Volume III: The Rise of a Modern City, 1871–1893|date=September 1, 2007|publisher=University of Chicago Press|page=233|isbn=9780226668420|url=https://books.google.com/books?id=1yZ3hRGd8lwC&q=chicago+stock+exchange+founder+1882+henrotin&pg=PA233|access-date=August 6, 2015|archive-date=January 11, 2023|archive-url=https://web.archive.org/web/20230111192740/https://books.google.com/books?id=1yZ3hRGd8lwC&q=chicago+stock+exchange+founder+1882+henrotin&pg=PA233|url-status=live}}

In 1894, the Chicago Stock Exchange moved its trading floor to the old Chicago Stock Exchange building, designed by the firm of Adler & Sullivan, which was located at corner of Washington and LaSalle streets. The old Chicago Stock Exchange building was demolished in 1972, but the original trading floor and main entrance can now be found at the Art Institute of Chicago.{{cite web|url=http://interactive.wttw.com/loop/lost-loop/chicago-stock-exchange|title=Chicago Stock Exchange|date=October 24, 2011|publisher=WTTW|access-date=August 6, 2015|archive-date=January 11, 2023|archive-url=https://web.archive.org/web/20230111192740/https://interactive.wttw.com/loop/lost-loop/chicago-stock-exchange|url-status=live}} The exchange began to flourish significantly in the late 1880s, with the rate of transactions of stocks and bonds increasing and earning them big profits.

In July 1914, the Exchange closed as a result of World War I, and remained closed until December 11.{{Cite web|last=Martin|first=Andrew D.|title=100 Years Ago, The New York Stock Exchange Experienced A 4-Month Long Circuit Breaker|url=https://www.businessinsider.com/new-york-stock-exchange-shut-down-1914-2014-7|access-date=2020-08-31|website=Business Insider|archive-date=January 11, 2023|archive-url=https://web.archive.org/web/20230111192741/https://www.businessinsider.com/new-york-stock-exchange-shut-down-1914-2014-7|url-status=live}} In October 1915, the basis of quoting and trading in stocks changed from percent to par value to dollars.{{Citation needed|date=August 2020}} On April 26, 1920, the Chicago Stock Exchange Stock Clearing Corporation was established. On October 29, 1929, the stock market crashed, resulting in a very difficult time period for the Chicago Stock Exchange, and the stock market in general.{{citation needed|date=September 2017}}

In 1949, the CHX merged with the exchanges of St. Louis, Cleveland and Minneapolis/St. Paul to form the Midwest Stock Exchange, which kept its headquarters in Chicago. In 1959, the New Orleans Stock Exchange became part of the Midwest Stock Exchange, and in the early 1960s the Midwest Stock Exchange Service Corporation was established to provide centralized accounting for member firms.{{citation needed|date=September 2017}}

In April 1978, the Chicago Stock Exchange launched an Intermarket Trading System (ITS), a system that allowed orders to be sent from one exchange to another to ensure that customers received the best execution available.{{Cite web|title=Intermarket Trading System Plan|url=https://www.sec.gov/rules/final/34-42212.htm|access-date=2020-08-31|website=www.sec.gov|archive-date=October 16, 2020|archive-url=https://web.archive.org/web/20201016213809/https://www.sec.gov/rules/final/34-42212.htm|url-status=live}} In the 1980s, the Chicago Stock Exchange made several technological advancements to improve trading. In 1982, the CHX launched the MAX system, which allowed CHX to be one of the first stock exchanges to provide fully automated order execution. In 1987, the CHX implemented programs to trade Nasdaq securities.{{Cite web|title=SEC Policy Statement: SRO Automated Systems|url=https://www.sec.gov/divisions/marketreg/arp-i.htm|access-date=2020-08-31|website=www.sec.gov|archive-date=October 6, 2020|archive-url=https://web.archive.org/web/20201006061316/https://www.sec.gov/divisions/marketreg/arp-i.htm|url-status=live}}

In the 1990s, the Exchange had a rebirth, and in 1993 changed its name back to the Chicago Stock Exchange,{{cite news|url=https://query.nytimes.com/gst/fullpage.html?res=9F0CE4D71F3AF93BA35754C0A965958260&sec=&spon=&partner=permalink&exprod=permalink|title=Chicago (Midwest) Market Dusts Off Its Original Name|first=Barnaby J.|last=Feder|work=The New York Times|date=July 8, 1993|access-date=November 7, 2007|archive-date=January 11, 2023|archive-url=https://web.archive.org/web/20230111192742/https://www.nytimes.com/1993/07/08/business/chicago-midwest-market-dusts-off-its-original-name.html?sec=&spon=&partner=permalink&exprod=permalink|url-status=live}} reflecting its roots and identity within the Chicago financial community. In 1997 the Chicago Stock Exchange began trading exchange-traded funds (ETFs).{{citation needed|date=April 2017}}

Image:MidwestStockEx08.jpg

At the beginning of the new millennium, several major changes occurred. In 2005, the SEC approved a change of the ownership structure of the CHX from a not-for-profit, member-owned company to a for-profit, public stockholder-owned corporation (demutualization).{{Cite web|title=SEC.gov {{!}} Unfair Exchange: The State of America's Stock Markets|url=https://www.sec.gov/news/speech/jackson-unfair-exchange-state-americas-stock-markets|access-date=2020-08-31|website=www.sec.gov|archive-date=October 17, 2020|archive-url=https://web.archive.org/web/20201017030905/https://www.sec.gov/news/speech/jackson-unfair-exchange-state-americas-stock-markets|url-status=live}} The CHX now operates as a direct and wholly owned subsidiary of CHX Holdings, Inc., a Delaware corporation.{{Cite web|date=2018-11-01|title=Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reflect Name Changes of the Exchange and its Direct Parent Company and To Amend Certain Corporate Governance Provisions|url=https://www.federalregister.gov/documents/2018/11/01/2018-23844/self-regulatory-organizations-chicago-stock-exchange-inc-notice-of-filing-and-immediate|access-date=2020-08-31|website=Federal Register|archive-date=January 11, 2023|archive-url=https://web.archive.org/web/20230111193245/https://www.federalregister.gov/documents/2018/11/01/2018-23844/self-regulatory-organizations-chicago-stock-exchange-inc-notice-of-filing-and-immediate|url-status=live}} Later in 2005, the CHX implemented the Electronic Book trading platform; the predecessor technology of the New Trading Model's Matching System. In 2006, the Exchange announced regulatory and shareholder approval of an investment in CHX by Bank of America Corporation, Bear Stearns (acquired by JP Morgan Chase in 2008), E*TRADE FINANCIAL Corporation, and Goldman, Sachs & Co. In the same year, the CHX announced that it had completed the migration to the New Trading Model platform (the CHX Matching System).{{Cite web|title=Form 10-K|url=https://www.sec.gov/Archives/edgar/data/1120193/000119312508037364/d10k.htm|access-date=2020-08-31|website=www.sec.gov|archive-date=April 8, 2022|archive-url=https://web.archive.org/web/20220408061654/https://www.sec.gov/Archives/edgar/data/1120193/000119312508037364/d10k.htm|url-status=live}}

The National Stock Exchange ceased trading operations on May 30, 2014, bringing the number of active stock exchanges in the United States to 11. Wrote Bloomberg, that left "just one public exchange, Chicago Stock Exchange Inc., that isn't owned Bats, Nasdaq OMX Group or IntercontinentalExchange Group Inc."{{cite news|url=https://www.bloomberg.com/news/2014-05-02/national-stock-exchange-files-with-sec-to-halt-operations.html|title=National Stock Exchange Files With SEC to Halt Operations|work=Bloomberg.com|publisher=Bloomberg News|date=May 2, 2014|access-date=June 15, 2014|first=Sam|last=Mamudi|archive-date=June 2, 2014|archive-url=https://web.archive.org/web/20140602070221/http://www.bloomberg.com/news/2014-05-02/national-stock-exchange-files-with-sec-to-halt-operations.html|url-status=live}}

On February 5, 2016, Chongqing Casin Enterprise Group, a Chinese-led investment group, entered into a definitive agreement to acquire CHX Holdings, Inc., the parent corporation of the Chicago Stock Exchange, for an undisclosed amount, which is subject to regulatory approvals. The privately held Casin Group was founded in 1997. A minority ownership position is held by Bank of America, E-Trade, Goldman Sachs and JPMorgan Chase.{{cite news |last=Egan |first=Matt |date=February 5, 2016 |title=China group to buy Chicago Stock Exchange |url=https://money.cnn.com/2016/02/05/investing/china-buys-chicago-stock-exchange/ |newspaper=CNN Money |location=Chicago |access-date=February 5, 2016 |archive-date=February 6, 2016 |archive-url=https://web.archive.org/web/20160206083849/http://money.cnn.com/2016/02/05/investing/china-buys-chicago-stock-exchange/ |url-status=live }} The acquisition is valued to be less than $100 million.{{cite news |last=Hu |first=Fox |date=February 5, 2016 |title=Obscure Chinese Firm Dives Into $22 Trillion U.S. Market |url=https://www.bloomberg.com/news/articles/2016-02-05/obscure-chinese-firm-dives-into-22-trillion-u-s-stock-market |newspaper=Bloomberg News |location=Chicago |access-date=February 6, 2016 |archive-date=February 6, 2016 |archive-url=https://web.archive.org/web/20160206083406/http://www.bloomberg.com/news/articles/2016-02-05/obscure-chinese-firm-dives-into-22-trillion-u-s-stock-market |url-status=live }} However, the deal was questioned by then-candidate Donald Trump during his 2016 presidential campaign.{{cite news|last1=Lockett|first1=Hudson|last2=Weinland|first2=Don|title=SEC pushes back on Chinese-led takeover of Chicago Stock exchange|url=https://www.ft.com/content/d4cfa8d8-7d87-11e7-9108-edda0bcbc928 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/d4cfa8d8-7d87-11e7-9108-edda0bcbc928 |archive-date=December 10, 2022 |url-access=subscription |url-status=live|access-date=August 10, 2017|work=Financial Times|date=August 10, 2017}} Moreover, Congressman Robert Pittenger urged the United States Department of the Treasury to look into the Casin Group's background. By August 2017, the deal was still pending, with the U.S. Securities and Exchange Commission expressing reservations. The sale was blocked by the government in February 2018.{{cite news |last=Horowitz |first=Julia |date=February 15, 2018 |title=A Chinese takeover of the Chicago Stock Exchange just got blocked |url=https://money.cnn.com/2018/02/15/investing/sec-chicago-stock-exchange-china/index.html |work=CNN |access-date=August 3, 2020 |archive-date=October 23, 2020 |archive-url=https://web.archive.org/web/20201023083205/https://money.cnn.com/2018/02/15/investing/sec-chicago-stock-exchange-china/index.html |url-status=live }}

The New York Stock Exchange's parent company, Intercontinental Exchange Inc., agreed to acquire the 136-year-old market for an undisclosed amount. CHX continued to operate as a registered national securities exchange until the end of 2019 when CHX ceased to exist.

The CHX Matching System was designed for full electronic trade matching.{{cite web|url=http://www.chx.com/trading-information/matching-system/|title=Matching System|website=CHX|access-date=August 6, 2015|archive-date=September 1, 2015|archive-url=https://web.archive.org/web/20150901085713/http://www.chx.com/trading-information/matching-system/|url-status=live}} Publicly traded companies do not need to be listed on the CHX to be traded at CHX; SEC rules allow the CHX to trade stocks listed on other exchanges.[http://www.stockmarkets.com/exchanges/north-america/chicago-stock-exchange/ "Chicago Stock Exchange"] {{Webarchive|url=https://web.archive.org/web/20151119055558/http://www.stockmarkets.com/exchanges/north-america/chicago-stock-exchange/ |date=November 19, 2015 }}, StockMarkets.Com. Accessed August 6, 2015.

In 2016, CHX rolled out its on-demand auction product, CHX SNAP{{Cite web |url=http://www.chx.com/snap/ |title=CHX SNAP |access-date=November 17, 2015 |archive-date=November 18, 2015 |archive-url=https://web.archive.org/web/20151118151213/http://www.chx.com/snap/ |url-status=live }} (Sub-second Non-displayed Auction Process), which received regulatory approval{{Cite web|url=http://www.chx.com/_posts/rule-filings/ProposedFilings/CHX-2015-03-34-76087.pdf|title=NYSE Chicago}} from the Securities and Exchange Commission in October 2015 and a [https://www.chicagofed.org/publications/chicago-fed-letter/2015/343 thorough review] from the Federal Reserve Bank of Chicago. CHX SNAP is designed to facilitate bulk trading of securities on a lit market and to minimize speed and information advantages enjoyed by only a few market participants.

• Chicago Stock Exchange Arch
• Chicago Curb Exchange
• List of stock exchanges in the Americas
• List of stock exchange mergers in the Americas

{{reflist}}

• [http://www.chx.com Chicago Stock Exchange]. 2008. Retrieved February 18, 2008.

{{Commons category|Chicago Stock Exchange}}

• {{Official website|https://www.chx.com/}}
• {{usurped|1=[https://web.archive.org/web/20040912170810/http://www.emporis.com/en/wm/bu/?id=102667 Emporis on old building]}}
• [https://www.nytimes.com/2009/05/29/arts/design/29anti.html?_r=1 Assets of Splendor From a Stock Exchange] Eve M. Kahn, The New York Times May 28, 2009
• [http://www.cqcasin.com/ Chongqing Casin Enterprise Group website]
• {{HABS |survey=IL-1034 |id=il0099 |title=Chicago Stock Exchange Building |photos=13 |dwgs=9 |data=12 |cap=2}}

{{Louis Sullivan}}

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Category:1882 establishments in Illinois

Category:Companies based in Chicago

Category:Financial services companies established in 1882

Category:Economy of Chicago

Category:Historic American Buildings Survey in Chicago

Category:Self-regulatory organizations in the United States

Category:Stock exchanges in the United States