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.

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