O'Reilly logo

Electronic Exchanges by Nidhi Singh, Michael Gorham

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

5. From Private Club to Public Company
Executive Summary
Member-owned exchanges were the standard model for many years and did a fairly good job. However, an exchange owned by members meant that members often took precedence over customers. In this chapter we explain what a membership is and how those memberships were transformed into a trading right and a bucket of common stock under a process called demutualization, and we review case studies of the CME, CBOT, CBOE, NYMEX, and NYSE. We also explain the drivers behind this important transformation.

Introduction

In this chapter we explore the second of the four basic transformations of the exchanges: the conversion of member-owned exchanges into publicly traded companies. There are really two steps ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required