In recognition of these important milestones, Chicago's Mayor Richard M. Daley presented NSX with a resolution adopted by the City Council of Chicago, congratulating NSX on its achievements and declaring March 7, 2005, "National Stock Exchange Day in Chicago." (To view text of Resolution, go to www.nsx.com.)
"We appreciate Mayor Daley's acknowledgement of NSX's accomplishments and we are proud to call Chicago home," said NSX CEO and President David Colker. "NSX's introduction of the first electronic stock exchange, a quarter-century ago, is just one example of how NSX has influenced the way stocks are traded in this country. Over the years, NSX has led the way in service and technology innovations that have become industry standards. We remain firm in the commitment that inspires these innovations - to provide our customers with the best, most cost-efficient service in the industry."
NSX recently completed a record-shattering 2004 calendar year, in which share volume averaged 493.7 million per day and the number of trades averaged 1.2 million per day. The strong pace has continued into 2005, with daily trades on January 4th surpassing the two-million mark for the first time in the Exchange's history.
A History of Innovation
In addition to 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 "preferencing" rule, which permits internalization in an electronic, competing specialist exchange environment. This model allows member firms to provide public customers with lower cost and higher quality executions.
- 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 the Firm Order Submission (FOSSM) audit trail, this comprehensive system is 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 markets to get the best possible execution prices for their public customers.
- NSX developed the National Securities Trading System (NSTSSM), which automatically performs all functions of an auction market and facilitated the advent of its all-electronic platform.