Pacific Stock Exchange

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The first U.S. stock exchange to demutualize, in 1999, the Pacific Stock Exchange was a regional stock exchange located in San Francisco, California. It was acquired by the owner of the ArcaEx, Archipelago Holdings, on Sept. 27, 2005, which in turn was bought by the New York Stock Exchange.

History

The Pacific Stock Exchange was founded in 1882 as the San Francisco Stock and Bond Exchange, just seven years before the Los Angeles Oil Exchange was founded. In 1957 the two exchanges merged to form the Pacific Coast Stock Exchange. However, trading floors were maintained in both cities. A name change to the Pacific Stock Exchange took place in 1973. Options trading began three years later. In 1997 the word "Stock" was dropped from the Pacific Stock Exchange name.

By 1999 roughly five percent of the 17.5 million shares traded daily on the exchange involved personal contact between a buyer and seller on the exchange floor as markets became substantially more electronic in nature.[1]

In 2001 the Los Angeles trading floor was closed, and in 2002 the San Francisco trading floor closed as well.

Pacific Exchange equities trading now takes place exclusively through NYSE Arca (formerly known as ArcaEx), an electronic communications network (ECN). Its former trading floor on the corner of Sansome and Pine Street in San Francisco's financial district was sold to private developers and converted into a fitness club. This real estate conversion also occurred in Chicago when Chicago Mercantile Exchange moved from its quarters at 444 West Jackson Boulevard to Wacker Drive.

In 2003 the Pacific Exchange launched PCX Plus, an electronic options trading platform.

On September 27, 2005, the Pacific Exchange was bought by the owner of the ArcaEx, Archipelago Holdings, which in turn was bought by the New York Stock Exchange in 2006. The New York Stock Exchange Group, Inc., now NYSE Euronext, conducts no business operations under the name Pacific Exchange, essentially ending its separate identity.

Resources

See NYSE Arca

References

  1. "Exchange Ending an Era: Pacific is phasing out its historic stock trading floor”. www.sfgate.com.