Boston Stock Exchange (BSE) Overview
The Boston Stock Exchange (BSE) was one of the oldest regional stock exchanges in the US, established in 1834. In 2007, Nasdaq acquired BSE for $61 million. BSE was known for its innovative contributions, such as founding the Boston Options Exchange (BOX) with the Montreal Exchange and Interactive Brokers. This article explores the history and significance of BSE.
The Boston Stock Exchange, located in the historic financial district of Boston, Massachusetts, was a venerable institution that played a pivotal role in the evolution of American financial markets. Established in 1834, it was the third oldest stock exchange in the United States, boasting a rich heritage that was closely intertwined with the city's ambiance of gas-lit lamps and red brick streets.
In 2007, Nasdaq purchased the Boston Stock Exchange for $61 million, which resulted in BSE becoming a part of a larger and more dynamic financial network. This marked a significant development in the exchange's history, as it became part of a larger and more dynamic financial network.
Operational Hours and Subsidiaries
The Boston Stock Exchange operated during standard market hours, from 8 a.m. to 7 p.m. on weekdays, with exceptions for holidays, aligning with the schedules of other major exchanges. Notably, it owned two subsidiaries: the Boston Options Exchange Regulation and the BSE Clearing Corporation, which played crucial roles in ensuring regulatory compliance and facilitating clearing and settlement processes.
One of BSE's noteworthy achievements was the founding of the Boston Options Exchange (BOX) in 2002. This endeavor was a joint effort with the Montreal Exchange, a derivatives exchange, and Interactive Brokers, a prominent discount brokerage. The Montreal Exchange eventually acquired full control of BOX in 2007, further solidifying its position in the financial landscape.
By permitting membership to foreign brokers, the Boston Stock Exchange made a significant mark on international finance during its prime. This forward-thinking approach helped pave the way for global capitalism to flourish. Moreover, BSE distinguished itself from its larger counterpart, the New York Stock Exchange, by permitting the exchange of bonds for cash in 1914, coinciding with the outbreak of World War I.
Over the years, several notable companies were listed on the Boston Stock Exchange. While many have since merged or ceased operations, they played a role in shaping the exchange's identity. Some of these companies included:
- Ascent Solar Technologies, Inc.
- Littlefield Corporation
- Timeline, Inc.
- First Carolina Investors, Inc.
- Cleveland Biolabs, Inc.
- Biodelivery Sciences Intl International, Inc.
- Bluefly, Incorporated
- Intnl International, Inc.
- Magellan Petroleum Corporation
- American Mold Guard
The Boston Stock Exchange, with its deep-rooted history dating back to 1834, was an integral part of Boston's financial landscape. Its acquisition by Nasdaq in 2007 marked a new chapter in its journey, yet it continued to uphold its legacy of innovation through initiatives like the Boston Options Exchange. BSE's openness to foreign brokers and its departure from traditional norms, such as the exchange of bonds for cash during World War I, exemplified its pioneering spirit in the world of finance. While the list of companies that once graced its trading floor may have evolved, the Boston Stock Exchange will always be remembered for its enduring impact on American and global finance.