WHAT IS Miami Stock Exchange

The Miami Stock Exchange refers to a regional stock exchange that operates in the city of Miami, Florida.

BREAKING DOWN Miami Stock Exchange

The Miami Stock Exchange, which functions as a major trading center for 27 Latin American and Caribbean countries, uses the symbol MSX4 to represent itself. Individuals in the financial industry consider the Miami Stock Exchange a regional stock exchange, which in the United States means any stock exchange outside of New York City, which serves as the country’s financial capital. The Miami Stock Exchange provides electronic trading software and services for stocks, futures and currencies, but is not an active trading floor with pits and traders. Along with electronic trading services, the Miami Stock Exchange offers a full range of processing and distribution services to the worldwide financial community, especially servicing Latin American and Caribbean countries. Though there is not an active trading floor in the sense that there are traders shouting deals across the room, the exchange still has traders who fill orders.

The Miami Stock Exchange and Regional Stock Exchanges

The Miami Stock Exchange functions as a regional stock exchange. A regional stock exchange is any stock exchange that trades publicly held equity outside of a country’s primary financial center. In the United States that means that every stock exchange outside of New York City functions as a regional stock exchange. New York City serves as the financial capital of the United States and is home to the New York Stock Exchange, Nasdaq and the American Stock Exchange. Of the multiple stock exchanges that call New York City home, the New York Stock Exchange is the primary stock exchange, a term that refers to the most important stock exchange in a country. The primary market in the United States, the New York Stock Exchange was founded in 1792 when 24 stockbrokers in New York City signed the Buttonwood Agreement. Now the New York Stock Exchange is the largest equities-based exchange in the world.

In contrast, the Miami Stock Exchange, as a regional exchange, trades in over-the-counter securities, securities from the South and Central American markets, and localized companies which are too small to register on a national exchange. Along with the Miami Stock Exchange there are various other regional stock exchanges throughout the United States, including the Chicago Stock Exchange and the National Stock Exchange, the latter located in Jersey City. The Securities and Exchange Commission, founded in 1934 in response to the stock market crash of 1929, oversees the regional stock exchanges.