U.S. Stock Markets
Get a brief overview of some of the most well-known U.S. Stock Markets and the function of each.
In the United States, two of the most well-known stock exchanges are the New York Stock Exchange (NYSE) and the Nasdaq. The role of an exchange is to facilitate fair and orderly trading for all participants as well as to provide real-time, transparent pricing information for listed stocks. The NYSE, a subsidiary of the Intercontinental Exchange Group (ICE), has a physical trading floor where a portion of trade volume is conducted, while the Nasdaq is all electronic. Other electronic marketplaces include Bats and IEX.
There are also several exchanges listing options on equities, such as Cboe Global Markets, which acquired Bats Exchange in 2017. Nasdaq and NYSE also operate options exchanges. All U.S. stock and options exchanges are regulated by the Securities and Exchange Commission (SEC).
CME Group, which owns the Chicago Mercantile Exchange, Chicago Board of Trade, NYMEX, and Comex, lists futures contracts and options on futures, covering asset classes such as stock indices, currencies, interest rates, agricultural commodities, energy products, and metals. ICE also lists some soft commodity, energy, and financial futures and options. Futures and options on futures are regulated by the Commodity Futures Trading Commission (CFTC).
Nowadays, almost every country in the world has its own stock market, sometimes called a bourse, although in some cases a regional exchange will account for most of the trading volume across a geographic area.