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NSX's 119th anniversary caps off a year of historic milestones for the Exchange that included a name change, record-breaking volume, and capturing a 25-percent market share of trades in Nasdaq-listed stocks.
"From a regional exchange to a national entity unbounded by geography, the National Stock Exchange has become synonymous with industry innovation," said NSX Chief Executive Officer and President David Colker. "As the first all-electronic stock exchange in the nation back in 1980, NSX set the standard for exchange service and efficiency, and it continues to do so. The fact that one out of every four trades in Nasdaq-listed securities is now handled by NSX attests to the value of our business model, and we are more committed than ever to delivering the best service in the industry."
On the heels of a record calendar year in which NSX volume soared to an all-time high of 145,608,072 trades and 68,907,714,950 shares in 2003, NSX faces its future poised for continued growth.
"Our growth is a direct result of the value we bring to our customers," Mr. Colker said. "For example, INET, which is one of the largest markets for Nasdaq securities, chose to migrate all of its Nasdaq volume to NSX during its recent successful consolidation."
A Year of Milestones
On November 7, 2003, the National Stock Exchange changed its name from the Cincinnati Stock Exchange. With its corporate offices headquartered in Chicago, its geographically diverse broker-dealer base, and the irrelevance of location in an all-electronic environment, the name change was the next natural step in the Exchange's history.
In addition to its record-setting annual volume performance, NSX set a number of single-day volume records in recent months. One of the most significant occurred on December 3, 2003, when daily trades topped one million for the first time in the Exchange's history.
A History of Leadership and Innovation
Aside from introducing the first all-electronic stock exchange in the U.S.,
NSX has been responsible for many other industry innovations:
- NSX introduced the competing specialist system, in which multiple specialists can make markets in any given stock.
- NSX pioneered the first time modification preferencing rule that permitted internalization in an electronic, competing specialist exchange environment. This model allowed member firms to provide public customers with lower cost, higher quality executions.
- In 1998, NSX created the first market data revenue-sharing program, known as the Specialist Operating Revenue (SORSM) program.
- NSX was the first exchange to develop a complete electronic order audit trail. Known as Firm Order Submission (FOSSM) audit trail, this comprehensive system was a model for the industry.
- NSX introduced the first automated exchange interface with the Intermarket Trading System (ITS), enabling its members to interact electronically with all other stock exchanges to get the best possible execution prices for their public customers.
