National Stock Exchange to Close Dec. 16


It’s the end of an era.

The National Stock Exchange will cease trading operations as of the close of business on Friday, December 16.

The 131-year-old exchange reported that it has filed Information Circular 16-161 to all its members of the decision to finally close its doors. On December 9, the exchange filed a petition to halt all trading operations.

In its filing, the exchange said , “National Stock Exchange Inc (“NSX” or the “Exchange”) is issuing this Information Circular to provide notice to Exchange Equity Trading Permit (“ETP”) Holders that it has filed with the Securities and Exchange Commission (the “Commission”) a rule amendment that will permit it to cease trading activity on the Exchange’s trading system (the “System”) as of the close of business on Friday, December 16, 2016 (the “Closing Date”).

The Exchange’s rule filing with the Commission may be found on the NSX website, www.nsx.com/Regulation.

“The Exchange’s rule amendment will become operational as of the close of business on the Closing Date. Amendment to Rule 11.1 to Cease Trading The Exchange will amend Interpretations and Policies .01 under Rule 11. 1 (Hours of Trading).nsx-logo

The exchange added that while NSX shall cease trading on Friday, December 16, all NSX rules will remain in full force and effect through and after the closing date. Key considerations for ETP holders ETP holders are advised of the following in connection with the cessation of trading on the System as of the close of business on the Closing Date

The Exchange remains fully operational until December 16, 2016.

The Exchange will continue to be registered as a national securities exchange and will continue to retain its status as a self-regulatory organization. The NSX said that it will fully discharge all of its obligations as a self-regulatory organization pursuant to the Securities Exchange Act through and after the Closing Date.

“All NSX rules shall remain in effect through and after the Closing Date and the Exchange will retain disciplinary jurisdiction over all ETP Holders and persons associated with ETP Holders pursuant to Chapter VIII. of the Exchange’s Rules and, specifically, Rule 8.1(b). Pursuant to Exchange rules, after the Closing Date the Exchange will enforce any rule violation that occurred prior to the close of business on the System on the Closing Date.”

The Exchange will terminate the ETP status of active ETP Holders as of December 16, 2016 unless the ETP Holder has voluntarily terminated its ETP status prior to that date pursuant to Exchange rules. NSX will no longer accept new ETP applications or further consider any pending ETP applications.

The exchange was founded March 1885 in Cincinnati, Ohio, as the Cincinnati Stock Exchange. In 1976, it closed its physical trading floor and became an all-electronic stock market. The Cincinnati Stock Exchange moved its headquarters to Chicago in 1995, and changed its name to the National Stock Exchange – NSX – on November 7, 2003. Owned by its members since inception, it demutualized in 2006.

It later moved its headquarters to Jersey City, New Jersey. In September 2011, CBOE Stock Exchange (CBSX) entered into an agreement to acquire the National Stock Exchange. The acquisition was completed on December 30, 2011 with both exchanges to operate under separate names.

The National Stock Exchange first ceased trading operations on May 30, 2014. The exchange at that time stated in a release that it, “continues to be registered as a national securities exchange under Section 6 of the Securities Exchange Act (the “Act”) and remains a self-regulatory organization. All NSX rules remain in full force and effect.”

On February 24, 2015, the NSX was bought by a private entity known as National Stock Exchange Holdings and trading subsequently resumed on December 22, 2015.

Two previous exchanges, both located in New York City, operated as the National Stock Exchange. The first exchange operated for seven months to September 1869. The other, owned by the New York Mercantile Exchange, traded from about 1962 to 1974.

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