Cincinnati Stock Exchange (CSE) Overview

Established in 1885, the Cincinnati Stock Exchange specialized in railroad and financial companies. It rebranded as the National Stock Exchange (NSX) in 2003, relocating from Ohio to New Jersey with a brief stopover in Chicago. Today, it operates as NYSE National within the NYSE network.

Basics

CSE, also known as the Cincinnati Stock Exchange, was established in 1885 by Cincinnati businessmen. The CSE shifted its headquarters to Chicago in 1995 and rebranded as the National Stock Exchange in 2003, with its new headquarters in New Jersey.

A Brief History

The Cincinnati Stock Exchange met the increasing financial demands of Cincinnati as the city's business landscape grew. It became the city's financial center and transitioned to electronic trading in 1976, using telephones and computers.

Until November 7, 2003, the Cincinnati Stock Exchange retained its name as it relocated to Chicago, a major trading hub, before rebranding as the NSX. In 1976, it adopted a geographically dispersed electronic trading floor, aligning with changes in the Securities and Exchange Act. By 1985, it had become the first fully electronic exchange in the United States, facilitating automatic order execution through the Intermarket Trading System.

Transformation and Acquisition

Experiencing significant changes in the 2000s, the privately owned Cincinnati Stock Exchange underwent a transformation. In 2006, it demutualized and became the National Stock Exchange, relocating to Jersey City, NJ. Later, in 2011, the Cboe Stock Exchange acquired NSX, but the two continued to operate separately.

In May 2014, the NSX adjusted its pricing structure, charging fees for both sides of a trade. Trading stopped on May 30, 2014, but the exchange maintained its status as a registered securities exchange during a reorganization phase.

In 2015, the NSX was purchased by National Stock Exchange Holdings, leading to a resumption of trading in late 2015. However, in 2016, the New York Stock Exchange announced its intent to acquire NSX, temporarily halting trading operations in February 2017.

Following SEC approval, the NYSE integrated NSX into its Pillar trading platform, renaming it "NYSE National." Operations resumed in 2018, offering competitive fee structures and attracting investors seeking liquidity or efficient trade execution.

Conclusion

The Cincinnati Stock Exchange had a rich history dating back to 1885. It played a significant role in Cincinnati's financial landscape before rebranding as the National Stock Exchange and eventually becoming part of the NYSE network. Today, as NYSE National, it continues to provide competitive fee structures and attract investors looking for liquidity and efficient trade execution.