Modern Stock Trading – The Changing Face of Global Exchanges

Want to learn about the changing faces of Global Exchanges in Modern Stock Trading? There are many Stock exchanges at present but out of many, there are a few which are the most popular among others.

New York Stock Exchange (NYSE), Bombay Stock Exchange (BSE), Tokyo Stock Exchange (TYO), NASDAQ, London Stock Exchange (LSE), NSE are few stock exchange examples out of a list of major stock exchanges. 

All of them operate under different Geo-locations with different names and bound to that region facilitating trading of stocks, bonds, and other financial instruments.

Before stepping into stock trading of the modern world, let’s understand more about the dominant stock exchange in the world step by step:

Which stock exchange was in force at that period and factors fueled its growth?

Domestically, the New York Stocks Exchange (NYSE) faced very limited competition for almost two centuries with the primary growth source of the ever-growing American Economy.

Different stock exchanges for different market regions

While the LSE (London Stocks Exchange) continued to dominate the European market in stock trading, the NYSE (New York Stock Exchange) continued expanding with large companies in the US market.

Other major countries also developed their own trading exchange such as Germany and France, but they were often treated as a first step to listing in NYSE or LSE.

How Technology breakthrough affected Exchange?

In the late 20 century, the stock exchange expanded into many other exchanges. One of these is NASDAQ, which became most anticipated by technology companies. It also gained lots of importance due to the booming of the technology sector in the 1980s and 1990s.

It also became the first exchanging trade that took place electronically between a web of computers. It gave rise to the use of electronic trading as it was more time-efficient and cost-efficient.

Increased Competition from other stocks exchange

Due to the establishment of NASDAQ, the NYSE also faced an increase in competition in stock trading from Australia and Hong Kong ( Financial center of Asia).

The First Trans-Atlantic Exchange Establishment

Euronext came to existence and formed in the year 2000 by merging Brussels, Amsterdam & Paris Exchange. The NYSE eventually had to merge with Euronext in 2007 and together they established the first Trans-Atlantic exchange.