Evolution of Stock Exchanges: From Bruges to Modern Markets

History of the Stock Exchange

Over 21 years ago, the concept of the stock exchange emerged. Today, less than 1% of businesses remain listed on the market.

Origins and Early Development

There is no definitive agreement on the origin of stock exchanges. The clearest precursor lies in procurement auctions, where goods were sold publicly, with the price determined by existing demand.

An urban legend traces the birth of this concept to the XV century in Bruges. Operations were reportedly closed in the house of a man named Vander Bouse, whose shield featured three bags (of money).

The commercial center shifted from Bruges to Antwerp. In 1527, Charles V of Germany and I of Spain authorized the creation of a stock exchange there.

Later, between 1608 and 1611, the world's first official stock exchange was built in Amsterdam, modeled after the one in Antwerp. This is where shares of companies began to be quoted. The shares of the East India Company were a major subject of speculation.

Major Global Exchanges

• The London Stock Exchange was created in 1773 and was the most important for many years due to its large daily trading volume. Today, it ranks third after New York and Tokyo.
• Tokyo arose in 1773, and New York in 1817.

In New York, before the formal exchange was established, meetings took place in what is now Wall Street Plaza. Twenty-four brokers would buy and sell shares on behalf of their clients, exchanging orders and fulfilling agreements under a tree in the plaza. These brokers founded the New York Stock Exchange (NYSE) in 1817.

Spanish Exchanges

Regarding Spain, there are four stock exchanges: Madrid, Bilbao, Barcelona, and Valencia, which emerged in that order.

Distinct Global Patterns

Three distinct patterns of stock exchanges exist worldwide:

1. Anglo-Saxon System: Brokers were private organizations, accounting for the most significant volume (over 50% between London and New York). It originated from the free association of its members but became increasingly regulated over time.
2. Latino System: This is a semi-public institution where actors involved are appointed by the government or through opposition nomination.
3. Germanic System: Found only in Germany, membership is restricted exclusively to banks. These exchanges are public entities.

In Spain, the exchanges hold an exclusive contract for the purchase and sale of securities and stocks. The four exchanges are governed by their respective governing corporations, which are responsible for each exchange's operation. These governing bodies are independent of the government (meaning the leading society cannot hold shares in the agency that controls them).