DEFINITION of NYSE Amex Equities
NYSE Amex Equities is an American stock exchange best known for trading small cap, micro cap and exchange-traded funds. The most active shares on the exchange operate in energy, mining, medical, and pharmaceutical sectors. NYSE Amex Equities experienced many name changes since it started in 1849 and today goes by NYSE American, which operates as a fully-electronic exchange designed to limit latency speeds.
BREAKING DOWN NYSE Amex Equities
NYSE Amex Equities was rebranded in 2008 after Euronext acquired the former American Stock Exchange. The change to NYSE Amex Equities was the first in 50 years when it was renamed the American Stock Exchange. At one time, the American Stock Exchange was the second-largest exchange in the United States, after the New York Stock Exchange. That role has since been filed by NASDAQ.
After several acquisitions, the NYSE AMEX Equities landed on the name NYSE American. It is now a fully electronic exchange that facilitates institutional trading with products like an electronic designated market maker assigned to each listed company and a delay mechanism to encourage midpoint trading. This unique blend of services provides investors with an additional method to enter and exit positions while limiting adverse selection. In 2016, NYSE American announced plans to introduce a 350-microsecond speed bump in trading small and micro cap stocks, a concept made famous by IEX's founder.
History of NYSE Amex Equities
The original version of the NYSE Amex Equities was believed to have started in 1849 when trades took place outdoors. For this reason, the exchange adopted the name New York Curb Agency to reflect the unorthodox transactions. It moved indoors 20 years later and received the name New York Curb Exchange until 1953, at which time the exchange changed its name to American Stock Exchange. At this point, the American Stock Exchange was the second-largest in the United States, second to the New York Stock Exchange.
In 2009, Euronext purchased the exchange and renamed it NYSE Amex Equities. The name only lasted a few years when it became the NYSE MKT. After the SEC approval of IEX, NYSE MKT rebranded to NYSE American to reflect the newly implemented speed bump.
NYSE American was a member of the National Association of Securities Dealers (NASD) from 1998 to 2004 before the exchange returned to private ownership. In early 2017, the exchange announced plans to end floor trading as part of a transition to a new technology platform. This breaks from tradition of brokers roaming the exchange floor during normal trading hours.