The work of the Stock Exchange

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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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XII. Comparison and security clearance

Collection:: Economics Books

314 THE WORK OF THE STOCK EXCHANGE attempt to clear stocks was made by the Philadelphia Stock Exchange. The New York Stock Exchange was compara- tively slow to inaugurate a clearing system, and its original “Clearing House of the New York Stock Exchange” was not established until May 17, 1892—the centennial of the first brokers’ agreement from which the Exchange itself had devel- oped.® Before 1892, Stock Exchange members “compared” their trades by exchanging “comparison tickets,” and some members would for a fee themselves clear stocks for other members. The “Clearing House of the New York Stock Exchange” undertook to clear intermediary transactions in certain securi- ties, both as to the securities themselves and their money values, but it provided no means for centralized security de- liveries, or for any further clearance or settlement of money. The “Clearing House” was administered by paid managers under the supervision of a former standing sub-committee of the Stock Exchange Governing Committee. Establishment of the Stock Clearing Corporation.—So matters stood until 1920, when the continued growth of the New York stock market, as well as the tremendous strain upon American credit conditions during and after the Great War, rendered it desirable for the Exchange to establish further facilities for money clearance and settlement, in order to effect economies in time, labor, and banking accommodation. This step compelled far-reaching changes in the entire system, which was reorganized as the “Stock Clearing Corpo- ration” whose share capital of $500,000 is all owned by the New York Stock Exchange. The Corporation is in no sense a bank, but simply an agency for its members whereby the delivery, clearance, and settlement of security transactions can be effected with the maximum speed, safety, and economy. At present it has about 425 clearing members—all of them Stock Exchange firms. The Stock Clearing Corporation has a clear- TT 6 See Appendix XIIa.

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