Regional Stock Exchange
What Is a Regional Stock Exchange?
A regional stock exchange is a stock exchange that is situated in a region outside that country's primary financial center. Frequently, companies who can't meet the severe listing requirements of a national exchange might fit the bill for a listing on a regional exchange, however a company that fits the bill to be on a national exchange may likewise register for a listing on at least one regional exchanges.
Grasping Regional Stock Exchanges
In the United States, a regional stock exchange is one that exists outside of New York City, which is viewed as the country's financial center and home to the New York Stock Exchange (NYSE), NASDAQ, and the American Stock Exchange (AMEX).
Regional stock exchanges trade in over-the-counter (OTC) and limited companies, which are too small to register on a national exchange. By expanding participation in markets, regional stock exchanges add to overall market liquidity and increase the productivity of financial markets. There are seven regional exchanges in the U.S. that are registered with the SEC.
The Securities and Exchange Commission (SEC) was shaped as part of the Securities Exchange Act of 1934. By Oct. 1, 1934, there were 27 SEC-registered exchanges and when the SEC President introduced the official report in January 1935, there were 34. In 1934, major regional stock exchanges existed across the United States, including the Boston Exchange, Philadelphia Stock Exchange, Chicago Exchange, and Pacific Stock Exchange (initially the San Francisco Stock Exchange and Los Angeles Oil Exchange before the 1957 merger). Each of these clearinghouses had a distinct concentration.
These four major regional exchanges each had a specific market that they zeroed in on. They were:
- Boston: Primary spotlight is on mutual funds.
- Chicago: Trades regionally listed endlessly stocks from other exchanges, including the NYSE, AMEX, and NASDAQ, to service the requirements of its regional financial institutions.
- Pacific: Known for servicing the options market.
- Philadelphia: Primary spotlight on giving a market to derivatives and options from different sectors (metals, [oil](/unrefined petroleum), semiconductors, banks, utilities, and currency).
The NASDAQ acquired the Philadelphia and Boston exchanges, while the NYSE obtained the Pacific Exchange, ending their experience as independent substances. In 2018, the NYSE's parent company agreed to purchase the Chicago Exchange.
These are the exchanges at present registered with the SEC:
- BOX Exchange LLC
- Cboe BYX Exchange, Inc.
- Cboe BZX Exchange, Inc.
- Cboe C2 Exchange, Inc.
- Cboe EDGA Exchange, Inc.
- Cboe EDGX Exchange, Inc.
- Cboe Exchange, Inc.
- Investors Exchange LLC
- Long-Term Stock Exchange, Inc.
- MEMX, LLC
- Miami International Securities Exchange
- MIAX Emerald, LLC
- MIAX PEARL, LLC
- Nasdaq BX, Inc.
- Nasdaq GEMX, LLC
- Nasdaq ISE, LLC
- Nasdaq MRX, LLC
- Nasdaq PHLX LLC
- The Nasdaq Stock Market
- New York Stock Exchange LLC
- NYSE Arca, Inc.
- NYSE Chicago, Inc.
- NYSE American LLC
- NYSE National, Inc.
Regional Stock Exchanges Overseas
Like the United States, other nations additionally have national exchanges. The London Stock Exchange (LSE) and the Tokyo Stock Exchange (TSE) are instances of foreign national exchanges. These countries may likewise have regional stock exchanges. For instance, the U.K. has The International Stock Exchange on the Channel Islands and the Eastern Caribbean Securities Exchange, which covers British domains in the Caribbean.
Regional stock exchanges abroad may likewise function as the primary exchange for a group of closely arranged countries. For instance, the Bourse R\u00e9gionale des Valeurs Mobili\u00e8res SA (BRVM) is a regional stock exchange that serves C\u00f4te D'Ivoire, Senegal, Niger and five other West African countries.
Features
- A regional stock exchange is a stock exchange not situated in that country's primary financial center, and where regional companies are listed.
- Frequently, companies that can't meet the severe listing requirements of a national exchange might fit the bill for a listing on a regional exchange.
- Regional stock exchanges add to overall market liquidity and increase the effectiveness of financial markets.
