What is ‘Pacific Exchange – PCX’
An exchange network that coordinates the trading of stock options between both institutional and individual investors. The PCX was one of four U.S. exchanges to trade equity options and the first to develop and implement an electronic trading system. At one time, the PCX had operations in both Los Angeles and San Francisco, but both closed in early 2000 when the PCX partnered with the Archipelago Exchange. ArcaEx later merged with the New York Stock Exchange and PCX transactions are now conducted on the NYSE Arca platform.
Explaining ‘Pacific Exchange – PCX’
PCX was originally formed in San Francisco in 1882 as the Stock and Bond Exchange. It officially got its name in 1957 when the San Francisco and Los Angeles stock exchanges merged. For years, the PCX was a mainstay in San Francisco’s financial district, but its open outcry system of trading became archaic with the advent of computers and computer trading. It ceased operations in 2005.
Further Reading
- After-hours trading of NYSE stocks on the regional stock exchanges – www.sciencedirect.com [PDF]
- Toward a national market system for US exchange–listed equity options – onlinelibrary.wiley.com [PDF]
- Post‐Reform Market‐Order Execution Quality: Multidimensional Comparisons Across Market Centers – onlinelibrary.wiley.com [PDF]
- Price discovery in the US stock options market – jot.pm-research.com [PDF]
- Restructuring institutional block trading an overview of the optimark system – www.tandfonline.com [PDF]
- Order flow distribution, bid–ask spreads, and liquidity costs: Merrill Lynch's decision to cease routinely routing orders to regional stock exchanges – www.sciencedirect.com [PDF]
- Equity trading and the allocation of market data revenue – papers.ssrn.com [PDF]
- Specialist: The firm or the individual?: Empirical evidence from the options markets – www.sciencedirect.com [PDF]
