The work of the Stock Exchange

Bibliographic data

Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

642 APPENDIX development of this sort; and (2) both London and New York have specialized and concentrated financial districts in which a decentralized security handling system would “work” tolerably well, while it could not prove equally satisfactory in Paris or Berlin, where financial houses are to a greater extent scattered throughout the city. The Security Centralization Committee of the New York Stock Exchange, although conscious of the theoretical (and perhaps in New York the ultimately practical) value of handling securities by the check-and-deposit system of the Bank des Berliner Kassen-Vereins, decided that before this superior practice could be effectually inaugu- rated in New York, it would first be necessary to centralize the security delivery system under the New York Stock Exchange. Ac- cordingly, in 1928 the Exchange authorized the establishment of a Central Security Delivery Department, and the Stock Clearing Cor- poration undertook to work out the details of its operation. A room in the basement of the Stock Exchange building near the corner of Wall and Broad Streets was accordingly remodeled, provided with windows and cages for receiving and delivering security tellers, and tables and racks inside for sorting out and temporarily filing the securi- ties to be delivered through the Department. The new delivery system was actually inaugurated April 18, 1929; at first deliveries of only a few large and active share issues were handled through it, with the idea of testing the new system practically before extending its scope widely to the security list. The economies and greater speed of settlement obtained by the new system quickly led to its increased amployvment with listed issues. (X1IIIb) Since, by rule of the New York Stock Exchange (Con- stitution, Article XXI) corporations cannot possess or exercise mem- bership in the Exchange, thesincorporated New York banks and trust companies cannot be members of the Stock Clearing Corporation on :he same basis as Stock Exchange members. Nevertheless, a consid- erable volume of security deliveries and payments is made daily be- tween the incorporated New York banking institutions and members of the New York Stock Exchange, in respect to which the Stock Clearing Corporation can effect the same savings as in the dealings hetween Exchange members. As a preliminary and experimental step in developing centralized delivery, the Stock Clearing Corporation during January, 1928, estab- lished facilities for centralizing security deliveries, and clearing and settling money payments therefor, in dealings between all Stock Ex- change members and two large New York trust companies. This service was of course on a voluntary basis. and was at first utilized

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