Philadelphia Stock Exchange (PHLX)
The Philadelphia Stock Exchange, or PHLX, is the oldest stock exchange in the United States, with a history that dates back to 1790. Located in Philadelphia, Pennsylvania, the PHLX is a centralized marketplace for trading stocks, options, and index products. PHLX offers a wide range of modern trading tools to meet the needs of traders of all experience levels.
The PHLX is owned by The NASDAQ OMX Group, Inc., one of the world’s largest securities exchanges. The PHLX trading operations are divided into three main sectors: equity options, index options, and equity products. The equity options sector includes trading of exchange-traded funds (ETFs), options on individual stocks, and options on foreign exchange rates. The index options sector includes the trading of options on several major indices of the U.S. stock market, such as the Nasdaq-100, the S&P 500, and the Russell 2000. Finally, the equity products sector includes trading of large cap stocks, such as Alphabet and Apple, as well as smaller companies, such as Netflix and Twitter.
The PHLX was the first U.S. exchange to launch a hybrid trading platform in 2005. This platform combines their traditional open outcry trading floor with their electronic trading systems. It leverages existing open outcry trading capabilities with electronic trading, ensuring tight markets and a smooth transition from floor to electronic trading. In addition, the PHLX also offers a Designated Primary Market Maker (DPM) program. DPMs are professional traders who have an agreed-upon liquidity obligation to meet a certain percentage of the bid and ask quotes on listed securities.
In recent years, the PHLX has modernized its open outcry trading, which is the traditional “pit trading” that the exchange has been known for since its inception. These changes include a new acoustic shielding system and the installation of computer screens on the trading floor, allowing traders to better track the market data and make quicker, more informed decisions.
The PHLX is also home to two of the world’s most popular options products, the CBOE Volatility Index (VIX) and the Nasdaq-100 Index (NDX). The VIX, also known as the “fear gauge”, is a measure of expected stock market volatility and is calculated using options on the S&P 500 Index. The NDX is an index basket consisting of the 100 largest non-financial companies listed on the Nasdaq, a U.S. stock market index.
The PHLX provides a great platform for traders of all experience levels and offers several trading tools and options that are sure to be attractive to those interested in investing in stocks, options and indices. With the combination of modern technology and a strong understanding of how to develop efficient and effective markets, the PHLX has positioned itself as one of the leading exchanges in the world
