Structures of Stock Exchange Markets Through out the World

The origin of the modern merchandise stock exchanges can be placed at the end of the XV Century   on the medieval fairs of Western Europe. The assisting merchants would sell and buy merchandise without seeing them or by just having a sample of them.

Afterwards there is a more regular contact and sellers and buyers would meet on certain concrete places and dates, it could be in coffee shops, streets or others. Later on, the nucleus of merchants and brokers proceed to a certain institutionalization of this market, which after repeated modifications they arrive to the kind of market of our days.

It is good to emphasize, however, that these modifications have affected more the form than the background of the functioning of the stock exchange markets.

The development of the stock market goes in parallel with the appearance and diffusion of the limited companies and to the emission of securities of the national debt.

The term stock exchange arose in Bruges (Belgium), on the hand of the Van Der Bursen, a family of bankers. They organized a security market on the rooms of their palace.

In 1460 the Antwerp stock exchange market was created, being the first modern stock exchange market. In 1570 the London stock exchange market was created, next to the appearance of a great number of commercial companies dedicated to the foreign trade. In those years most transactions were done at Coffee Shop in the city of London.

In 1773 the profession of brokers in Real State Securities was organized, in the same year a group of them acquired a location denominated as stock exchange to carry out there the transactions. The evolution was similar in New York, when in 1792 a number of merchants and brokers got together and created   the New York Stock Exchange.

In France, the first transactions of public goods go back to the year of 1719. The stock exchange was suppressed in 1793 but was opened again in 1796.

In Spain existed since the XII Century in Barcelona the profession of broker, and in 1652 a house of trade in Madrid.

However, it wasn’t until the year of 1831 that the commerce stock   exchange in Madrid was regulated, and afterwards the stock exchange of Bilbao, in 1890, the official of Barcelona in 1915, and that of Valencia in 1981.

At the beginning of its historical evolution, brokers and merchants were the ones who fixed the norms of regulation for fiscal purposes, or to establish the minimum norms to guarantee the interests of the investors against those of the companies and brokers and vice versa.

Today the supervision and security of the market follows other models.

In our days, the most important stock exchange markets (the ranking according to the volume traded) are: distinguished in a first group are, New York, Tokyo and London; in a second group are, Germany, Paris, Switzerland, Toronto and Hong Kong, followed by others as Amsterdam and Italy.

According to the country, we can distinguish two great tendencies as to the relations that they maintain with he stock exchanges functioning in them. There are countries like France in which there are an only stock exchange market (In Paris) eliminating almost totally the rest, while in others like in the United States, Japan or Germany have interconnected all their stock exchange markets to form an only national market.  In the entire world there is a tendency towards unifying and integrating the most important stock exchange markets. This is why the triangle formed by the stock exchanges of New York –Tokyo-London is acquiring each time more weight. The idea is for all the stock exchange markets to operate together and for the prices quoted to be the same everywhere, due that actually the prices quoted are different in each market, thus existing small differences of quotations. There are countries in which the stock exchange is a public institution and that the authorized agents for intermediation are named by the government.