07-05-2014, 11:36 AM
National Stock Exchange
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Definition of 'National Stock Exchange'
The first stock exchange in America that was completely electronically automated. All members of the exchange are registered broker-dealers. This exchange created the National Securities Trading System (NSTS), which performs all auction market tasks on an automated basis.
Investopedia explains 'National Stock Exchange'
The National Stock Exchange was originally founded in Cincinnati in 1885. It was formerly known as the Cincinnati Stock Exchange, but moved to Chicago in 1995 and changed its name in 2003. The National Stock Exchange can also refer to stock in India or Australia.
The National Stock Exchange (NSE) (Hindi: राष्ट्रीय शेयर बाज़ार Rashtriya Śhare Bāzaār) is stock exchange located in Mumbai, India. It is the 11th largest stock exchange in the world by market capitalisation and largest in India by daily turnover and number of trades, for both equities and derivative trading.[2]NSE has a market capitalisation of around US$1 trillion and over 1,652 listings as of July 2012.[3] Though a number of other exchanges exist, NSE and theBombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the NSENIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalisation.
NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities.[4] There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE.[5] As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India.[6] In 2011, NSE was the third largest stock exchange in the world in terms of the number of contracts (1221 million) traded in equity derivatives.[7] It is the second fastest growing stock exchangein the world with a recorded growth of 16.6%
NSX History – Key Milestones
National Stock Exchange, the nation's first all-electronic stock exchange, is the low-cost provider of exchange services. A model of exchange efficiency, NSX has been a driving force for change in the world of securities exchanges, responsible for many industry innovations:
1980: NSX replaced its physical trading floor with a completely automated market, becoming the first all-electronic stock exchange in the U.S.
1986: NSX introduced the first automated exchange interface with the Intermarket Trading System (ITS), which enabled its members to interact electronically with all other markets to get the best possible execution prices for their public customers.
1992: NSX pioneered internalization in an electronic, competing specialist exchange environment. This model allowed member firms to provide public customers with lower cost and higher quality executions.
1993: NSX was the first exchange to develop a complete electronic order audit trail for regulatory purposes.
1998: NSX created the first market data revenue-sharing program, which has saved the industry more than $100 million annually.
2006: NSX introduced its new business plan culminating in the launch of NSX BLADE, an entirely new state-of-the-art technology platform built from the ground up.