The Philadelphia Stock Exchange: Adapting To Survive In Changing Markets

Authors

John P. Caskey, Swarthmore CollegeFollow

Document Type

Article

Publication Date

2004

Published In

Business History Review

Abstract

This article analyzes the evolution of the Philadelphia Stock Exchange (PHLX), America's oldest stock exchange, from 1950 through 2000. PHLX was able to compete against the much larger New York Stock Exchange (NYSE) because it exploited loopholes created by fixed minimum trading commissions prior to 1975. After the liberalization of commissions, the PHLX competed against the NYSE by offering automated executions that met the needs of discount brokers. It also moved early to trade equity options and developed the first exchange-based market for foreign currency options.

Comments

This work is freely available courtesy of the Harvard Business School and Cambridge University Press.

Recommended Citation

John P. Caskey. (2004). "The Philadelphia Stock Exchange: Adapting To Survive In Changing Markets". Business History Review. Volume 78, Issue 3. 451-487. DOI: 10.2307/25096909
https://works.swarthmore.edu/fac-economics/1