Examples of exchanges
Exchanges are located in most countries around the world. They can be a physical location, where traders meet to conduct business, or an electronic platform.
Traditionally, an exchange was a physical location used for trading securities, which operated via an open outcry or a dual auction system. While less common, there are some exchanges that still offer pit trading – including the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).
In line with the rapid digital transformation of today’s economy, the definition of an exchange has significantly evolved too. As traditional exchanges began to handle an increasing amount of trading flow, most trades started to be placed electronically, off the trading floor. Some examples of purely digital exchanges are the NASDAQ stock exchange.