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● World Stock Exchanges Map , p.4-5 ● Philadelphia , from past to present , p.6 Stock Exchanges SPECIAL EDITION

Monthly Edition ⎥ Volume I ⎥ Issue 3 November 2018 ⎥ Distributed Freely

TIMELINE Quick Facts PHLX PHLX the oldest Two centuries stock exchange of trading on in the U.S. the PHLX 1790 ‣ The Philadelphia Stock Exchange (PHLX), the he Philadelphia Stock Exchange earliest stock exchange in the , was (PHLX) played an influential role in established. It was originally named the Board of America’s financial and economic T development. In its early days, the Brokers of Philadelphia, also referred to as the Philadelphia Board of Brokers. legal concept of a limited-liability corpora - tion had not yet achieved wide acceptance. 1870 So it was not corporate stocks, but rather ‣ PHLX established the first clearing house in the government and semigovernment instru - U.S. The function of the clearing house was to settle ments, such as bonds, notes, and bills that purchases and sales and assist delivery of securities. traded on the Exchange. Merchants' Exchange 1949-1969 In 1796, a more-restrictive exchange de - Building (A) ‣ PHLX merged with the Stock Exchange Brokers on the trading floor of the Philadelphia Stock Exchange buted, setting an entrance fee for brokers. in 1949 and was named the Philadelphia-Baltimore (Photo: Souvenir history, Philadelphia Stock Exchange: album of As of January 1, 1874, the par price for Stock Exchange. It merged with the Washington members; gallery of men of affairs, 1903) membership in the Philadelphia Board of Stock Exchange in 1954, becoming known as the Brokers was $1,000, with 198 seats, and Philadelphia-Baltimore-Washington Stock Ex - “not others are attainable under $2,000 change. In 1969, the Exchange acquired the Pitts - each.” The board represented a market cap - burgh Stock Exchange. The first stock ex - ital of around $350,000 according to the ar - 1975 ticle “The Philadelphia Stock Board” ‣ PHLX was one of the first exchanges to embrace published in The New York Times on 1st electronic trading, introducing a stock order routing January in 1874. and execution system called PACE (Philadelphia change in the U.S. was During the Automated Communication and Execution sys - nineteenth cen - tem). This system linked computers and allowed tury, the Ex - for instant electronic order execution. change and its born in Philadelphia members in - 2004 vested in mak - ‣ The Exchange became the first floor-based stock Research and writing by Kyriaki I. Balkoudi ing Philadelphia exchange to transform from that of a seat-based, the center of in - cooperative to a share-based for-profit company. dustrial Amer - 2007 riginally known as the Board of followed Hamilton’s lead, but the funds ulti - ica, raising capital for public works projects ‣ NASDAQ OMX Group purchased PHLX for Brokers, the Philadelphia Stock Ex - mately went to build a new city hall. In 1754 such as the Philadelphia and Lancaster $652 million in order to diversify by acquiring an change (PHLX) was the first formal Robert Morris (1734-1806) the “Financier of the Turnpike Company- America’ first turn - options platform. On July 24, 2008, the acquisition securities exchange in the U.S., American Revolution”, and local businessmen pike- railroads and coal mines that con - was completed, creating the third-largest options O founded in 1790, two years before the raised £348 to finance the opening of the Lon - nected cities to one another and built a fossil market in the U.S. . The PHLX origi - don Coffee House, which soon became the cen - fuel-based economy. nated in 1746 when Mayor James Hamilton ter of Philadelphia’s business and political life The Exchange also handled bank and insur - 2014 donated £150 in startup funds. attracting merchants, slave traders, and enter - ance stocks, permitting firms to acquire ‣ NASDAQ PHLX handled approximately 14 per - “James Hamilton, Esq., Mayor, represented to prise owners. When the British occupied much needed financial capital. These in - cent of derivative trades in the U.S., chiefly stock, the board that as it had been customary for the Philadelphia, the London Coffee House re - cluded The First Bank of the United States, currency, and index options. mayors of this city, at the going out of their of - mained closed and the City Tavern, replaced it the Pennsylvania Bank, and the Philadel - 2017 fice, to give an entertainment to the gentlemen as the epicenter of business. phia Bank, as well as The Pennsylvania ‣ The Exchange moved to a newlocation. Nasdaq’s of the corporation, he intended in lieu thereof, to The City Tavern, later named the Merchants Cof - Company for Insurance on Lives and options trading market at 1900 Market Street is give a sum of money equal at least to the sum fee House, became Philadelphia’s exchange. The Granted Annuities, and The Insurance Com - now in the FMC Tower at 30th and Walnut Streets. usually expended on such occasions, to be laid first president of the Exchange was Matthew pany of North America. As of 2017, NASDAQ PHLX run 42 percent of the out in something permanently useful to the city McConnell who had served in the French and In - At the turn of the twentieth century, stagna - nation’s options market share. and proposed the sum of one hundred and fifty dian War and in the Revolution. Other members tion of the Exchange contributed to Pounds toward erecting an exchange or other included James Glentworth, Clement Biddle, Philadelphia’s loss of power in the national 2018 public building” reads an extract from the min - Andrew Summers, Jr., Thomas McEwen, George and world economy. However, in the 1920s, ‣ NASDAQ celebrated the 10-Year anniversary of utes of an October 7, 1746 meeting of the Eddy, Thomas Orr, William W. Biddle, Thomas the volume of trading on the PHLX, as on the Philadelphia Stock Exchange acquisition. Philadelphia Board of Aldermen. Other mayors Newman and James McCaragh. many other regional exchanges, increased dramatically. Between 1930 and 1960 when most of the regional exchanges saw a fairly consistent decline in their market share, the PHLX managed to survive. Trading on the PHLX boomed between the 10 Years of PHLX as a part of the Nasdaq early 1960s and 1972.Over most of the 1980s and 1990s, the PHLX saw the vol - 8

1 On 7th November 2007, Nasdaq announced that it had entered into a definitive agreement to ac - ume of its equity trading grow, as did all 0 quire The Philadelphia Stock Exchange (PHLX) for $652 million cash. This resulted in its becoming stock exchanges in the generally booming 2

- the largest electronic stock market, listing over 3,000 firms, and the third largest options market markets. In September, 1990, the PHLX be - 8 domestically. As part of the transaction, which closed in July 2008, came the first exchange in the world to offer 0 Nasdaq also acquired a futures market operated by the Philadelphia Board of Trade, an equities around-the-clock trading by bridging the 0 gap between the night session and the early

2 business, and the Stock Clearing Corporation of Philadelphia. Celebrating the 10-year anniversary of the acquisition of PHLX, Nasdaq CEO Adena Friedman said that it “represented a critical step morning hours. In the twenty first century

X forward in Nasdaq’s transformation as a global cash equities and derivatives exchange, and signif - PHLX introduced Exchange Traded Funds

L icantly diversified Nasdaq’s product portfolio by providing us with one of the premier options (ETF’s), NASDAQ listed stocks and mak - ing order flow arrangements with Elec - H trading platforms in the United States.” PHLX is also expanding Nasdaq’s foothold in machine intelligence, mobile technology, and the cloud, providing innovative toolkits to investors. tronic Communication Networks (ECN’s). P IPress 3aaa_Layout 1 11/12/18 11:08 PM Page 30

4 World Stock Exchanges November 2018 1AMERICAS 2 EUROPE NORTH AMERICA SOUTH AMERICA 28. ALBANIA Tirana ALSE 0. BAHAMAS Nassau BISX 9. MEXICO Mexico City BMV 18. ARGENTINA Buenos Aires BCBA 29. AUSTRIA Vienna WIENER BORSE 30. BELARUS Minsk BCSE 1. BARBADOS Saint Michael BSE 10. MEXICO Mexico City BIVA 19. BRAZIL Sao Paulo BOVESPA 31. BELGIUM Brussels 2. BERMUDA Hamilton BSX 11. NICARAGUA Managua BVDN 20. CHILE Santiago SSE 32. BOSNIA-HERZEG.Banja Luka BLSE 3. CANADA Toronto TSX 12. PANAMA Panama City BVP 21. COLOMBIA Bogota BVC 13. SAINT KITTS & NEVIS Basseterre ECS E 32a.BOSNIA-HERZEG. Sarajevo SASE 4. CAYMAN ISLANDS Grand Cayman SXE 22. .EQUADOR Quito BVQ 33. BULGARIA Sofia BSE 5. DOMINICAN REP. S.Domingo BVRD 14. TRINIDAD & TOBAGO P. of Spain TTSE 23. .HONDURAS Tagucigalpa BVC 15. UNITED STATES CHX 34. CHANNEL ISLANDS Guernsey TISE 6. EL SALVADOR San Salvador BVES 24. PARAGUAY Asuncion BVPASA 35. CROATIA Zagreb ZSE 16. UNITED STATES New York NASDAQ 7. GUATEMALA Guatemala City BNV 25. PERU Lima BVL 36. CYPRUS Nicosia CSE 17. UNITED STATES New York NYSE 8. JAMAICA Kingston JSE 26. URUGUAY Montevideo BVM 37. CZECH REPUBLIC Prague PSE 27. VENEZUELA Caracas BVC 46

A M S T STOCKHOLM E R 56 D A 66 3 M 38 TORONTO 47 55 70 42 FRANKFU LONDON 34 31 42a 37 57 41 51 63 29 15 67 64 45 ZURICH 67a 62 48 35 54 17 32a NEW YORK CITY 32 5 16 58 28 NEW YORK CITY 65 Nasaq PHLX MADRID 16 A 43 PHILADELPHIA 86 53 2 114 102 98

0

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9 4 5 13 8 1 89 23 * * 7 * ** 6 11 * * 14 106 27 * 12 91 95 24 * 105 ** 21 26 90 ** AFRICA 94 ** 22 5 World 84. SOUTH SUDAN Juba To be launched 85. ETHIOPIA Addis Ababa ECX 86. ALGERIA Algiers IL BOURSA 87. ANGOLA Luanda BOVIDA Stock 25 88. BOTSWANA Gaborone BSE 89. CAPE VERDE Mindelo BVC 87 90. CAMEROON Duala DSX 91. COTE D'IVOIRE BRVM * Exchanges 92. EGYPT Alexandria EGX 19 SAO PAULO 93. EGYPT Cairo EGX 94. GABONE Libreville BVMAC ** 95. GHANA Accra GSE Map 96. KENYA Nairobi NSE 104 97 LESOTHO Maseru MSM 20 98. LIBYA Tripoli LSM This map shows the stock exchanges around the 99. MADAGASCAR Antananarivo MEX world. The 20 largest by market capitalization of listed 100. MALAWI Blantyre MSE companies are marked with their logo, the city they are 101. MAURITIUS Port Louis SEM located and a bold number in a circle. All are pre - 102. MOROCCO Casablanca CASA SE sented in alphabetical order by continent, country and 18 103. MOZAMBIQUE Maputo BVM city. As of August 2018, the NYSE ranked as the largest 104. NAMIBIA Windhoek NSX by market capitalisation with a value of tradable 110 105. NIGERIA Abuja ASCE shares amounting to 24.23 trillion U.S. dollars. 106. NIGERIA Lagos NSE 107. RWANDA Kigali RSE 108. SEYCHELLES Victoria SSE WORLD STOCK EXCHANGES 109. SOMALIA Mogadishu SSE * published by 110. SOUTH AFRICA Johannesburg JSE o EuropaProPress Ltd 111. SUDAN Khartoum KSE t 42 Marasesti Blv. 112. SWAZILAND Mbabane SSX s A

Bl.1, Sc.A, 2nd fl., Ap.7, 113. TANZANIA Dar Es Salaam DSE C 114. TUNISIA Tunis BVMT I *

04255 District 4, Bucharest, R

Romania 115. UGANDA Kampala USE F d Commerce Registry Code: J40/12206/2016 116. UGANDA Kampala ALTX A v Tel.+40 314.228.321 117. ZAMBIA Lusaka LUSE C www.investopress.com 118. ZIMBABWE Harare ZSE G IPress 3aaa_Layout 1 11/12/18 11:09 PM Page 31

November 2018 World Stock Exchanges 5 3 EURASIA 38. DENMARK Copenhagen NASDAQ 48. ITALY Milan BORSA ITALIANA 59. ROMANIA Bucharest BVB 69. ARMENIA Yerevan NASDAQ E 39. ESTONIA Tallinn NASDAQ 49. LATVIA Riga NASDAQ 60. RUSSIA Moscow MOEX 70. AZERBAIJAN Baku BSE 40. FINLAND Helsinki NASDAQ 50. LITHUANIA Vilnius NASDAQ 61. RUSSIA Saint Petersburg SPB 71. GEORGIA Tbilisi GSE 41. FRANCE Paris EURONEXT 51. LUXEMBOURG Lux/urg City LUXSE 62. SERBIA Belgrade BSE SE 42. GERMANY Frankfurt FWB 52. MACEDONIA Skopje MSE 63. SLOVAKIA Bratislava BSSE E 42a.GERMANY Hamburg BOERSE 53. MALTA Valletta MSE 64. SLOVENIA Ljubljana LJSE 43. GIBRALTAR Europort GSX 54. MONTENEGRO Podgorica MNSE 65. SPAIN Madrid BME SE 44. GREECE Athens ATHEX 55. NETHERLANDS AmsterdamEuRONEXT 66. SWEDEN Stockholm NASDAQ 45. HUNGARY Budapest BSE 56. NORWAY Oslo OSLO BORS 67. SWITZERLAND Zurich SIX 46 ICELAND Reykjavik NASDAQ 57. POLAND Warsaw GPW 67a. SWITZERLAND Bern BX SWISS 47. IRELAND Dublin EURONEXT 58. PORTUGAL Lisbon EURONEXT 69. TURKEY Istanbul MIDDLE EAST 40 4 LM 61 72. BAHRAIN Manama BHB 39 73. JORDAN Amman ASE 74. IRAN Tehran TSE 50 60 75. IRAQ Baghdad ISX 30 76. ISRAEL Tel Aviv TASE NKFURT 77. KUWAIT Kuwait City BK 78. LEBANON Beirut BSE 57 69 133 3 79. OMAN Muscat MSM 45 80. PALESTINE Ramallah PEX 138 81. QATAR Doha QSE 62 59 a 82. SAUDI ARABIA Riyadh 32 33 83. UAE Abu Dhabi ADX 52 71 152 134 28 68 69 70 BUSAN 131 44 150 132 125 147 TOKYO 36 78 SHENZHEN 76 75 130 80 73 74 144 92 77 143 141 122 126 72 HONG KONG 93 142 121 82 81 83 124 TAIPEI 120 SHANGHAI 149 127 MUMBAI 79 MUMBAI 139 128 135 111 ** 151 153 136 123

85 ** 84 148 109 137 145 116 146 115 96 6 ASIA PACIFIC ** 107 119. AUSTRALIA Sydney ASX 129 108 120. BANGLADESH Dhaka DSE 113 121. BANGLADESH Chittagong CSE 122. BHUTAN Thimphu RSEBL 123. CAMBODIA Phom Penh CSX 124. CHINA Shanghai SSE 125. CHINA Shenzhen SZSE 100 126. HONG KONG Hong Kong HKEX 117 127. INDIA Mumbai NSE 119 128. INDIA Mumbai BSE SYDNEY 99 129. INDONESIA Jakarta IDX 118 130. JAPAN Fukuoka FSE 101 131. JAPAN Nagoya NSE 88 103 132. JAPAN Tokyo TSE 133. KAZAKHSTAN Almaty KASE 134. KYRGYZSTAN Bishkek KSE 112 135. LAOS Vientiane LSX 136. MALAYSIA Kuala Lumpur BM 97 137. MALDIVES Male MSE 138. MONGOLIA Ulaanbaatar MSE 139. MYANMAR Vientiane LSX 140. NZX JOHANNESBURG 141. NEPAL NEPSE 142. PAKISTAN Karachi PSE 143. PAKISTAN Lahore PSE * The Bourse Régionale des Valeurs Mobilières, 144. PAKISTAN Islamabad PSE or BRVM, located in Abidjan, Cote d'Ivoire serves 145. PHILIPPINES Manila PSE 146. SINGAPORE Singapore SGX the countries of , , Guinea Bis - 140 sau, Côte d'Ivoire, , , and . 147. SOUTH KOREA Busan KREX 148. SRI LANKA Colombo CSE ** The Bourse Régionale des Valeurs Mobilières 149. TAIWAN Taipei TPEX d'Afrique Centrale, orBVMAC, located in Libre - 150. TAJIKISTAN Dushanbe CASE ville, Gabon serves the Central African Republic, 151. THAILAND Bangkong SET For any corrections regarding the Chad, Democratic Republic of Congo, Equatorial 152. UZBEKISTAN Tashkent UZSE stock exchanges on this map contact: Guinea and Gabon. 153. VIETNAM Ho Chi Minh City HOSE [email protected] IPress 3aaa_Layout 1 11/12/18 11:07 PM Page 28

6 LAST PAGE November 2018

HEADQUARTERS WORLD MARKETS PHOTO-Archive Locations of the PHLX, Philadelphia The rich history from past to Stock Exchange of the first U.S. present From the Merchants' Coffee The Philadelphia Stock Exchange, an occasion - House to the FMC Tower ally mobile institution, migrated among the securities exchange First Bank of the United States, the Sofitel Over its 228 years the Philadephia Stock Ex - tower and other landmarks since its founding at change (PHLX) has had a variety of names ❥ As the financial community continues to evolve, City Tavern. and office locations. PHLX continues to hold its proud place in the London Coffee House capital markets

he Philadelphia Stock Exchange provide electronic execution of stock orders in - (PHLX) dates its founding to 1790, stantly. In the same year the PHLX began to trade making it the oldest organised stock ex - options on equities, the third exchange doing so, change in the U.S. and the third-oldest after the Chicago Board Options Exchange T (CBOE) and the American Stock Exchange globally, after the Amsterdam Exchange (1602) and Paris Bourse (1724). In fact, the ear - (AMEX). In 1976, its Board of Governors re - liest known record of securities quotations in the stored its original name, the Philadelphia Stock United States is the "Price Current of Stocks," Exchange. On 27th February 1976 exchange vice printed on three-by-six inch paper and signed by president Gordon Yocum explained to the Samuel Anderson, Stock Broker, at Number 104 Philadelphia Inquirer, “While the acronym Lithograph by Kennedy & Lucas depicting the Chestnut Street, Philadelphia. It is dated April 10, [PBW] suited us, the board felt we needed a London Coffee House, the centre of Philadel - 1792. The Exchange provided an efficient source name more appropriate for our...history.” phia’s business life, as it stood in 1830. of capital for needed public works, such as the Pennsylvania Railroad and the Philadelphia Rail - In December 1982, the PHLX opened its way, utility systems, canals and real estate de - currency options trading floor. By 1988, Merchants' Exchange velopment. It also helped the nation raise funds currency options were trading in volumes Building (A) to establish new commercial banks and insurance as high as $4 billion per day in underlying I value. The introduction of Sector Index At its founding in 1790, the Board of Brokers was lo - companies. cated in the City Tavern- a place frequented by the Starting in 1846, the telegraph allowed investors Options in the 1990s, consisting of indexes such Founding Fathers of the United States and other dis - to have quick access to stock quotes and news, as the Gold/Silver Sector (XAU), KBW Bank tinctive people- at the corner of Second and Walnut bringing a new openness to the business of the Index (BKX), Utility Sector (UTY), and Insur - Streets. Members of the Philadelphia Exchange met Exchange. PHLX closed for four months in 1914 ance Index (KIX), made PHLX an industry at City Tavern so frequently it was often referred to because of World War I market turmoil. It also leader in sectors index options trading by allow - as the Merchants' Coffee House. This building was closed during the 1933 Bank Holiday. Following ing investors to use options trading for diverse in - severely damaged by a fire in 1834, but fortunately, World War II, the Exchange began to reach out dustries and commodities. The exchange grew in 1831, Stephen Girard (1750-1831), the nation's beyond Philadelphia, growing through mergers. even more through the creation of UCOM wealthiest man at the time, formed the Philadelphia Philadelphia merged with the Baltimore Stock (United Currency Options Market) in November Merchants’ Exchange Company with the intention of Exchange in 1949, and with the Washington 1994. UCOM was the first market in the world erecting a new building to house the Board of Brokers (D.C.) Stock Exchange in 1953. Through associ - to offer customisable currency options in an ex - and other groups. ate membership agreements, Philadelphia ex - change environment. In 1832, the Exchange began to build its headquarters panded its trading base to Pittsburgh, Boston, and In the twenty first century PHLX introduced Ex - Employing mainly marble, architect William based on drawings by architect William Strickland . Montreal. From 1953- 1976 the exchange was change Traded Funds (ETF's), NASDAQ listed Strickland (1788-1854), based the design on The Board of Brokers moved into the Merchants Ex - called the Philadelphia-Baltimore-Washington stocks and making order flow arrangements with classical Greek models. change Building at 3rd and Dock Streets in 1834 fol - Stock Exchange (PBW). Electronic Communication Networks (ECN's). lowing the fire at the Merchants Coffee House. Built In a major move in 2006, the exchange halted the between 1832 and 1834, the Merchants’ Exchange n increasing use of computers during the traditional floor trading that started in 1790. Merchants' Exchange Building has been declared a National Historic Land - 1960's and 1970's changed every busi - During its more than 200 years of history, PHLX, Building (B) mark. In 1876, the Philadelphia Stock Exchange ness, and Philadelphia was among the as one of North America’s primary marketplaces moved to the rear of the Girard Bank Building, for - first exchanges to engage in electronic has held on to its determination to provide an ef - merly the First Bank of the U.S.where it stayed until A trading. In 1975, PHLX introduced a ficient and transparent service to its listed com - 1888. In 1888, the Exchange moved to the Drexel computerized order-handling and execution sys - panies, brokers and investors, encompassing new Building which was demolished in 1959 to make way tem called PACE (Philadelphia Automated Com - ideas and solutions. for the new Library Hall. Between 1902 and 1912, the munication and Execution System). PACE would Exchange returned to the Merchants Exchange Building. In 1913, it moved to a building at 1411 Walnut St. In 1951, it moved to the Central Penn Bank Building at NASDAQ PHLX on the cutting 1401 Walnut Street. It stayed there until 1966 when it moved to a newly constructed building at 17th and edge of technology Sansom. In December 1968, the City of Philadelphia faced a fiscal crisis, resulting in a a 5-cent-per-share ■ NASDAQ PHLX, Inc. trades on equity tlement values data. It provides electronic stock-transfer tax imposed on every transaction on the options, index options, and U.S. dollar- and floor-based trade. PHLX. In reply, on 2nd January 1969, the Exchange settled currency options. It offers equity The front of the Merchants’ Exchange Building, moved its trading floor to Bala options; various derivatives of - ■ NASDAQ PHLX, Inc. operates located on the triangular site bounded by Dock Cynwyd, just outside Philadel - ferings, including FX options as a subsidiary of Nasdaq Inc., the Street, Third Street, and Walnut Street. phia’s border to avoid the tax. providing retail and institutional creator of the world's first elec - Three months later, a state traders with the opportunity to tronic stock market. Its technol - court ruled that the tax was il - trade options on major foreign ogy powers more than 70 Board Room legal, and the PHLX re - currencies; and sector index marketplaces in 50 countries, and 1 turned to Philadelphia. In options. The company also in 10 of the world's securities trans - 1981, the PHLX moved to distributes market data prod - actions. Nasdaq is home to more than a location at an office ucts, including futures 3,600 listed companies with a market building at Market and trading market data and value of approximately $9.6 trillion. Nineteenth Streets in sector index spot and set - Center City where it stayed until 2017 when it moved to its current location. References: ● John P. Caskey, “The Evolution of the Philadelphia Stock Exchange: 1964- 2002,” Federal Reserve Bank of Philadelphia Working Paper 03-21, August 2003. ● Domenic Vi - Photo: tiello with George E. Thomas, “The Philadelphia Stock Exchange and the City It Made”, University FMC Tower, of Pennsylvania Press, 2010 ● Philadelphia Stock Exchange Papers (1746-2005), Collection 3070, The Board Room of the Merchants' Exchange PHLX Nasdaq The Historical Society of Pennsylvania, 2006 ● E.P. Goodman, "History of the Philadelphia Stock Building. Pictures from Souvenir History headquarters Exchange", Press of the Northern Printing House, 1903. Philadelphia Stock Exchange