NYSE Arca: Difference between revisions

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{{Short description|American stock exchange}}
{{Refimprove|date=May 2007}}
{{Refimprove|date=May 2007}}
[[File:Db-X Deutsche Bank Arca 2011 Shankbone.jpg|thumb|The [[New York Stock Exchange]] building on August 9, 2011, when [[Deutsche Bank]]'s db-X Group commenced trading on NYSE Arca.<ref>[http://www.reuters.com/article/2011/08/09/idUS146177+09-Aug-2011+BW20110809 Deutsche Bank`s db-X Opens NYSE Arca on August 9], Reuters</ref>]]'''NYSE Arca''', previously known as '''ArcaEx''', an abbreviation of '''Archipelago Exchange''', is a [[securities exchange]] on which both stocks and options are traded. It is owned by [[NYSE Euronext]], which merged (as NYSE Group) with Archipelago Holdings in a [[reverse merger]] on 2006-02-27.
[[File:Db-X Deutsche Bank Arca 2011 Shankbone.jpg|thumb|The [[New York Stock Exchange Building]] on August 9, 2011, when [[Deutsche Bank]]'s db-X Group commenced trading on NYSE Arca<ref>{{Cite web |date=Aug 9, 2011 |title=Deutsche Bank's db-X Opens NYSE Arca on August 9 |url=http://www.reuters.com/article/2011/08/09/idUS146177%2B09-Aug-2011%2BBW20110809 |url-status=dead |archive-url=https://web.archive.org/web/20140715011056/http://www.reuters.com/article/2011/08/09/idUS146177+09-Aug-2011+BW20110809 |archive-date=July 15, 2014 |website=Reuters}}</ref>]]
Early reports indicate that NYSE Arca may have played an early role in the [[2010 Flash Crash]]<ref>http://blogs.wsj.com/marketbeat/2010/05/11/nasdaq-heres-our-timeline-of-the-flash-crash/</ref>


'''NYSE Arca''', previously known as '''ArcaEx''', an abbreviation of '''Archipelago Exchange''', is an [[Exchange (organized market)|exchange]] on which both stocks and options are traded. It was owned by [[Intercontinental Exchange]]. It merged with the [[New York Stock Exchange]] in 2006 and now operates as a subsidiary of the NYSE Group, Inc.<ref name="investopedia">{{cite web | url=https://www.investopedia.com/terms/a/archipelago.asp | title=Archipelago | first=Will | last=Kenton | access-date=May 9, 2019 | date=April 4, 2018 | publisher=Investopedia}}</ref><ref name="bizweek"></ref> It is headquartered in [[Chicago]].<ref name="bizweek">{{cite web|url=http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=7960146|archive-url=https://web.archive.org/web/20130605005442/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=7960146|url-status=dead|archive-date=June 5, 2013|title=NYSE Arca, Inc.: Private Company Information |website=Bloomberg BusinessWeek}}</ref>
The NYSE Arca exchange is headquartered in [[Chicago, Illinois]]. <ref>http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=7960146 NYSE Arca Overview, Bloomberg BusinessWeek</ref>

Early reports indicated that NYSE Arca may have played a role in the [[2010 Flash Crash]].<ref>{{cite news| url=https://blogs.wsj.com/marketbeat/2010/05/11/nasdaq-heres-our-timeline-of-the-flash-crash/ | work=The Wall Street Journal | first=Matt | last=Phillips | title=Nasdaq: Here's Our Timeline of the Flash Crash | date=11 May 2010 |url-status=live |archive-url=https://web.archive.org/web/20150829073058/https://blogs.wsj.com/marketbeat/2010/05/11/nasdaq-heres-our-timeline-of-the-flash-crash/ |archive-date= Aug 29, 2015 }}</ref>{{Update inline|reason=It's been eight years; conclusions have probably been reached.|date=May 2018}}


==History==
==History==
In November 1994 TerraNova Trading LLC is founded in Chicago by Stuart Townsend and Gerald Putnam in order to establish an electronic securities exchange. Its product, Archipelago, stated accepting trading orders on 20 January 1997 <ref>Free Encyclopedia of Ecommerce: Archipelago Holdings LLC, retrieved 30 Dec. 2011.</ref>.
In November 1994, Stuart Townsend and Gerald Putnam founded TerraNova Trading LLC, an electronic securities exchange, in Chicago. Its product, Archipelago, started accepting trading orders on January 20, 1997.<ref>{{cite encyclopedia|encyclopedia=Free Encyclopedia of Ecommerce|title=Archipelago Holdings LLC}}</ref>
Archipelago is one of the first [[electronic communication network|ECN]]s and a precursor to the Archipelago Exchange (ArcaEx) that was created in 2001 to facilitate electronic stock trading on US stock exchanges.


In 2005, Archipelago Holdings, the owner of ArcaEx, bought the [[Pacific Exchange]], after what had been a close working relationship since 2001.<ref>{{cite news |url=http://articles.chicagotribune.com/2005-01-04/business/0501040314_1_pacific-exchange-american-stock-exchange-archipelago-holdings |title=Archipelago to buy the Pacific Exchange |date=January 4, 2005 |publisher=Chicago Tribune }}</ref>
In 2005, Archipelago Holdings, the owner of ArcaEx, bought the [[Pacific Exchange]], after what had been a close working relationship since 2001.<ref>{{cite news |url=http://articles.chicagotribune.com/2005-01-04/business/0501040314_1_pacific-exchange-american-stock-exchange-archipelago-holdings |title=Archipelago to Buy the Pacific Exchange |date=January 4, 2005 |publisher=Chicago Tribune |url-status=dead |archive-url=https://web.archive.org/web/20180627034016/http://articles.chicagotribune.com/2005-01-04/business/0501040314_1_pacific-exchange-american-stock-exchange-archipelago-holdings |archive-date= Jun 27, 2018 }}</ref>


Archipelago Holdings merged with [[NYSE Group]] in April 2006 in a [[reverse merger]] and the business was renamed NYSE Arca.
In 2006, ArcaEx merged with the New York Stock Exchange (NYSE) and the name was changed to NYSE Arca.


On August 22, 2013 the Arca system sent multiple sequences to Nasdaq which overloaded the Securities Information Processor (SIP) caused by reconnection issues to Nasdaq. This in turn caused a chain effect reaction which led to the [[August 2013 NASDAQ flash freeze|NASDAQ flash freeze]].<ref>{{Cite web|url=http://ir.nasdaq.com/news-releases/news-release-details/nasdaq-omx-provides-updates-events-august-22-2013|title=NASDAQ OMX Provides Updates on Events of August 22, 2013 |date=Aug 29, 2013 |website=Nasdaq, Inc.|language=en|access-date=2018-10-19}}</ref>
==Market share==
As of 1 March 2007, NYSE Arca is the second largest [[electronic communication network]] in terms of shares traded. Approximately one out of every six shares traded on the American financial markets is traded on the system. For [[New York Stock Exchange]]-listed securities or [[Tape A]], it accounts for just over 10% of the shares traded. For NASDAQ-listed securities, NYSE Arca accounts for approximately 20% of the trading volume. For [[exchange-traded fund]]s, NYSE Arca accounts for 30-40% of the traded volume.


On Monday, March 20, 2017, the Arca platform stopped functioning due to a "system issue" and the exchange was unable to close trading for an undetermined number of funds.<ref>{{cite news |url=https://www.ft.com/content/f8ef8494-0dc1-11e7-b030-768954394623 |url-access=subscription |title=Glitch at NYSE Arca Hits Hundreds of Exchange Traded Funds |date=March 21, 2017 |publisher=Financial Times}}</ref>
==Fees==

NYSE Arca's [[Market liquidity|liquidity]] fee/rebate structure resembles that of other electronic communication networks. In late 2006, it was the first one to offer NASDAQ-style fees on [[New York Stock Exchange]]-listed securities, a move that was soon copied by NASDAQ and other electronic communication networks. NYSE Arca charges traders that remove liquidity from the Arca-book $3.00 per 1,000 shares. Traders that add liquidity receive a $2.00 rebate per 1,000 shares. Traders that route orders out of the NYSE Arca system are charged $1.00 per 1,000 shares for Tape A securities and $4.00 per 1,000 shares for other securities.
==See also==
* [[List of stock exchanges]]
* [[List of stock exchanges in the Americas]]
*[[List of stock exchange mergers in the Americas]]


==References==
==References==
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==External links==
==External links==
* [http://www.nyse.com/about/listed/1140564939187.html NYSE Arca Listings] on NYSE.com
* [https://www.nyse.com/markets/nyse-arca/trading-info NYSE Arca Trading Information] on NYSE
* [[n:NYSE to merge with Archipelago; NASDAQ to buy Instinet|NYSE to merge with Archipelago; NASDAQ to buy Instinet]]. ''Wikinews''
* [[n:NYSE to merge with Archipelago; NASDAQ to buy Instinet|NYSE to merge with Archipelago; NASDAQ to buy Instinet]]. ''Wikinews''


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[[Category:NYSE Euronext|Arca]]
[[Category:NYSE Euronext|Arca]]
[[Category:Financial services companies established in 1994]]

[[Category:Stock exchanges in the United States]]
[[Category:Options exchanges in the United States]]
[[Category:2006 mergers and acquisitions]]


{{Stockexchange-stub}}
{{Stockexchange-stub}}

Revision as of 20:58, 4 March 2024

The New York Stock Exchange Building on August 9, 2011, when Deutsche Bank's db-X Group commenced trading on NYSE Arca[1]

NYSE Arca, previously known as ArcaEx, an abbreviation of Archipelago Exchange, is an exchange on which both stocks and options are traded. It was owned by Intercontinental Exchange. It merged with the New York Stock Exchange in 2006 and now operates as a subsidiary of the NYSE Group, Inc.[2][3] It is headquartered in Chicago.[3]

Early reports indicated that NYSE Arca may have played a role in the 2010 Flash Crash.[4][needs update]

History

In November 1994, Stuart Townsend and Gerald Putnam founded TerraNova Trading LLC, an electronic securities exchange, in Chicago. Its product, Archipelago, started accepting trading orders on January 20, 1997.[5]

In 2005, Archipelago Holdings, the owner of ArcaEx, bought the Pacific Exchange, after what had been a close working relationship since 2001.[6]

In 2006, ArcaEx merged with the New York Stock Exchange (NYSE) and the name was changed to NYSE Arca.

On August 22, 2013 the Arca system sent multiple sequences to Nasdaq which overloaded the Securities Information Processor (SIP) caused by reconnection issues to Nasdaq. This in turn caused a chain effect reaction which led to the NASDAQ flash freeze.[7]

On Monday, March 20, 2017, the Arca platform stopped functioning due to a "system issue" and the exchange was unable to close trading for an undetermined number of funds.[8]

See also

References

  1. ^ "Deutsche Bank's db-X Opens NYSE Arca on August 9". Reuters. Aug 9, 2011. Archived from the original on July 15, 2014.
  2. ^ Kenton, Will (April 4, 2018). "Archipelago". Investopedia. Retrieved May 9, 2019.
  3. ^ a b "NYSE Arca, Inc.: Private Company Information". Bloomberg BusinessWeek. Archived from the original on June 5, 2013.
  4. ^ Phillips, Matt (11 May 2010). "Nasdaq: Here's Our Timeline of the Flash Crash". The Wall Street Journal. Archived from the original on Aug 29, 2015.
  5. ^ "Archipelago Holdings LLC". Free Encyclopedia of Ecommerce.
  6. ^ "Archipelago to Buy the Pacific Exchange". Chicago Tribune. January 4, 2005. Archived from the original on Jun 27, 2018.
  7. ^ "NASDAQ OMX Provides Updates on Events of August 22, 2013". Nasdaq, Inc. Aug 29, 2013. Retrieved 2018-10-19.
  8. ^ "Glitch at NYSE Arca Hits Hundreds of Exchange Traded Funds". Financial Times. March 21, 2017.

External links

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