American Stock Exchange History: From AMEX to NYSE American

Overview

The American Stock Exchange (AMEX), originally the New York Curb Exchange, was historically the third-largest U.S. stock exchange by trading volume. Known for listing emerging companies and pioneering new products, the exchange handled roughly 10% of U.S. securities trading at its peak. After a series of changes and an acquisition by NYSE Euronext in 2008, it now operates as NYSE American, a fully electronic exchange focused on smaller-cap and entrepreneurial companies.

Key points

• Began as curbside trading in the late 18th century and organized over the 19th and early 20th centuries.
• Formally became the New York Curb Exchange (1929) and renamed the American Stock Exchange in 1953.
• Introduced the listed-options market in 1975 and the first exchange-traded fund (ETF) in 1993.
• Acquired by NYSE Euronext in 2008 and rebranded as NYSE American; operates electronically with designated market makers for liquidity.

Early origins: curb trading to formal exchange

Trading in New York began informally in coffeehouses and on curbstones, where “curbstone brokers” specialized in securities of emerging businesses (railroads, oil, textiles). To bring order to this informal market, the New York Curb Market Agency was formed in 1908. In 1929 the market established a formal trading floor and became the New York Curb Exchange. It changed its name to the American Stock Exchange in 1953. Between 1950 and 1960 the total value of companies listed there rose substantially—from about $12 billion to $23 billion—reflecting its growing role for newer issuers.

Role and innovations

AMEX developed a reputation for innovation and for listing companies that did not meet the NYSE’s stricter listing standards. Notable contributions:
* Options market (1975): AMEX launched a listed-options market—options are contracts that give the right (but not the obligation) to buy or sell an asset at a set price by a specified date.
* First ETF (1993): The exchange introduced the first exchange-traded fund, a security that tracks an index or basket of assets while trading like a stock.

These initiatives helped broaden investor access to derivatives and index-based products.

Transition to NYSE American

Over time Nasdaq grew to challenge the NYSE’s dominance more than AMEX did. In 2008, NYSE Euronext acquired AMEX. The exchange subsequently operated under names such as NYSE Amex Equities and NYSE MKT before becoming NYSE American. The modern NYSE American is a fully electronic marketplace that focuses on small-cap and early-stage companies.

Listing advantages and market structure

NYSE American serves younger, entrepreneurial firms that may not meet the more stringent requirements of larger exchanges. Because it trades lower volumes than the NYSE or Nasdaq, the exchange uses electronic designated market makers (DMMs) to support liquidity and orderly markets. DMMs:
* Commit to quoting and trading obligations for assigned securities.
* Provide continuous bid and ask quotes, helping narrow spreads and facilitate execution.
* Earn revenue through the bid-ask spread and related fees.

This structure helps mitigate liquidity concerns common to small-cap listings while preserving a trading venue tailored to growth-stage companies.

Conclusion

From informal curb trading to a modern electronic marketplace, the American Stock Exchange played a pivotal role in U.S. market evolution—particularly by opening access to options and ETFs and by providing a listing home for emerging companies. Today’s NYSE American continues that legacy by serving smaller issuers with an electronic platform supported by designated market makers.