The Chicago Stock Exchange is the largest regional exchange in the US, allowing investors to trade securities listed exclusively with the exchange and on other exchanges. It was officially created in 1882 and changed its structure to a publicly traded company in 2005. The National Market System provides the framework for over-the-counter trading, and the exchange operates Monday through Friday with three trading sessions each day. Brokers and dealers can connect to the CHX using an electronic correspondence system, and the automated matching system matches orders with stocks selling for the best prices.
The Chicago Stock Exchange (CHX) is located in Chicago, Illinois, and is the largest regional exchange in the United States. Investors can trade securities listed exclusively with the exchange, as well as securities listed on other exchanges. CHX Holdings Inc., a Delaware-based corporation, owns the Chicago Stock Exchange. The CHX is a self-regulatory organization, but it is registered with the Securities and Exchange Commission (SEC), which oversees its activities.
Chicago stockbrokers began trading during the 1860s, but the Chicago Stock Exchange was officially created on March 21, 1882. Charles Henrotin was the exchange’s first president and president. The CHX merged with exchanges in Cleveland, Ohio; St.Louis, Missouri; and Minneapolis-St.Paul, Minnesota, in 1949 to create the Midwest Stock Exchange. In 1993 it officially changed its name to the Chicago Stock Exchange. In 2005, the CHX changed its structure from a member-owned non-profit organization to a publicly traded company.
The National Market System (NMS) provides the framework for over-the-counter (OTC) trading in the United States. Securities must meet specified criteria to be traded on the exchanges, including the CHX, which make up the NMS. The system allows the Chicago Stock Exchange and other regional exchanges to display real-time prices for shares selling on the exchange, as well as asking prices for the same shares on other exchanges.
As of 2010, the Chicago Stock Exchange operated Monday through Friday every week, but was closed for US federal holidays. There were three trading sessions each day: an early session, the regular trading session, and the late session. . The regular session was scheduled to trade during the same hours as other major stock markets in the US.
US-based brokers and dealers can connect to the CHX using an electronic correspondence system. The National Best Bid Offer (NBBO) rule requires dealers to find the best prices for customers who place purchase orders. The automated matching system receives orders and matches them with stocks selling for the best prices. If the offers cannot be matched, the system rejects the order and the purchase orders remain in the system until a suitable match is found.
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