The AMEX, located in New York City, is the third-largest stock exchange in the United States by trading volume, after the New York Stock Exchange (NYSE) and the NASDAQ. Key points about the AMEX:
- History: The AMEX was founded in 1908 as the New York Curb Market Agency. It was located on Broad Street in Manhattan and was known for trading stocks and options outside the more formal NYSE. In 1953, the exchange was renamed the American Stock Exchange.
- Listings: The AMEX was known for listing smaller, younger, and more speculative companies than the NYSE. It was also a pioneer in trading options, index shares, and exchange-traded funds.
- Options trading: The AMEX was the first major U.S. stock exchange to trade standardized options contracts, beginning with call options in 1975. The exchange later introduced put options and became a leading equity option trading market.
- Exchange-Traded Funds: The AMEX played a significant role in the development and growth of ETFs. The first U.S. ETF, the SPDR S&P 500 ETF (SPY), was launched on the AMEX in 1993.
- Market indices: The AMEX was home to several well-known market indices, such as the AMEX Major Market Index (XMI) and the AMEX Biotechnology Index (BTK).
- Merger with NYSE: In 2008, the NYSE Euronext (now part of Intercontinental Exchange, or ICE) acquired the AMEX for $260 million. After the acquisition, the AMEX was renamed NYSE Alternext U.S. and later became known as NYSE MKT. In 2017, NYSE MKT was rebranded as NYSE American.
Throughout its history, the AMEX served as an important alternative to the NYSE, providing a platform for smaller companies to access capital markets and pioneering the trading of new financial instruments such as options and ETFs.