What is 'Regional Stock Exchange'

A regional stock exchange is a stock clearinghouse situated outside of a country's primary financial center, which trades for the trading of publicly held equity. Companies who cannot meet the strict listing requirements of a national exchange may qualify for a listing on a regional exchange. Also, if a company meets the criteria, it may register for a listing on more than one regional exchange.

BREAKING DOWN 'Regional Stock Exchange'

In the United States, a regional stock exchange is one that exists outside of New York City, which is seen as the nation’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 localized companies, which are too small to register on a national exchange. By increasing participation in markets, the regional stock exchange can increase overall market liquidity and competition in financial markets.

History of regional stock exchanges

The Securities and Exchange Commission (SEC) formed as part of the Securities Exchange Act of 1934. At the founding of the SEC, there were 24 SEC-registered exchanges. Nineteen more received a temporary exemption from registration. In 1934, major regional stock exchanges existed across the United States, including the Boston exchange, Philadelphia Stock Exchange, Chicago exchange, and Pacific stock exchange. Each of these clearinghouses had a distinct focus. For example, the Pacific Exchange was known as a derivatives market, while the Philadelphia Stock Exchange was known for trading currency. The NASDAQ acquired the Philadelphia and Boston exchanges, while the NYSE procured the Pacific Exchange, ending their time as independent entities. In 2018, the NYSE reached an agreement to purchase the Chicago Exchange.

Regional exchanges currently registered with the SEC include:

  • BOX Options 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.
  • Chicago Stock Exchange, Inc.
  • The Investors Exchange LLC
  • Miami International Securities Exchange
  • MIAX PEARL, LLC

Regional stock exchanges overseas

Similar to the United States, other nations also have national exchanges. The London Stock Exchange and the Tokyo Stock Exchange are examples of foreign national exchanges. These countries may also have regional stock exchanges. For example, the U.K. has The International Stock Exchange on the Channel Islands and the Eastern Caribbean Securities Exchange, which covers British territories in the Caribbean.

Regional stock exchanges abroad may also function as the primary exchange for a group of closely situated countries. For example, the Bourse Régionale des Valeurs Mobilières SA (BRVM) is a regional stock exchange that serves Côte D'Ivoire, Senegal, Niger and five other West African countries.

RELATED TERMS
  1. Miami Stock Exchange

    The Miami Stock Exchange offers a full range of processing and ...
  2. Primary Exchange

    A primary exchange like the New York Stock Exchange facilitates ...
  3. Futures Exchange

    A futures exchange is a central marketplace, physical or electronic, ...
  4. Exchangeable Security

    An exchangeable security is a security that can be exchanged ...
  5. EDGX

    EDGX Exchange is a U.S. equities exchange operated by Cboe U.S. ...
  6. Primary Listing

    A primary listing is the main stock exchange, such as the New ...
Related Articles
  1. Investing

    Stock Exchanges Around The World

    We tell you about five of the most popular stock exchanges from around the globe.
  2. Tech

    190 Cryptocurrency Exchanges: So How to Choose

    With the plethora of digital currency exchanges, how can an investor choose the right one?
  3. Insights

    The Birth of Stock Exchanges

    Learn about the evolution of stock exchanges, from the Venetian states to the British coffeehouses, and finally to the NYSE.
  4. Managing Wealth

    Top Tips For Exchanging Money

    Take these tips to heart to avoid wasting money when you exchange currencies.
  5. Personal Finance

    The Worst Place to Exchange Currency

    Exchanging currency is a necessary part of traveling, but not all currency exchanges are created equal.
  6. Insights

    The World's Top Financial Cities

    These cities are the heart of the world's financial activity.
  7. Trading

    6 factors that influence exchange rates

    Aside from interest rates and inflation, the exchange rate is one of the most important determinants of a country's level of economic health.
  8. Trading

    How to Calculate an Exchange Rate

    Struggling to get a grasp on exchange rates? Here's what you need to know.
  9. Trading

    Dual And Multiple Exchange Rates 101

    Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work.
RELATED FAQS
  1. What are the rules behind the delisting of a stock?

    Find out the criteria for a company to remain listed on a stock exchange. Learn what actions would lead to a security being ... Read Answer >>
  2. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  3. Who uses bills of exchange?

    Find out who uses bills of exchange, why they are important in international trade and what happens when a bill is traded ... Read Answer >>
  4. How does inflation affect the exchange rate between two nations?

    Countries attempt to balance interest rates and inflation, but the interrelationship between the two is complex and can influence ... Read Answer >>
  5. How do I invest in the Nasdaq or the NYSE? Is it even possible? Would I want to? ...

    The Nasdaq and the NYSE are stock exchanges that trade securities. Nasdaq stands for National Association of Securities Dealers ... Read Answer >>
Trading Center