NYSE
New-York Stock Exchange, or NYSE, started functioning in 1792 and it's one of the most and oldest stock exchanges worldwide. Its activity is regulated by internal rules and instructions. Board of directors, which consists of members and independent representatives, conducts the stock exchange's management.
Operations here are carried out only by the members, the general quantity of which is almost 1400. All the members mainly are physical persons, not firms or companies. If the member of NYSE is the joint owner of a company, such a company is also considered to be the member of NYSE. Investment banks which occupy key positions at the American fund market prevail among the firms-members. The cost of broker place at NYSE is about 0,5 million USD.
There are four basic categories of members, and the two of them are main ones:
1. Specialists have a leading role in exchange trade. They conduct auctions by the separate groups of funds at separate auction grounds, executing two functions here. They act like agents-brokers, performing other brokers' orders: and act like dealers, working on their own behalf and for the payment. Their basic function is to provide liquidity and stability of the market sector which they work in. Besides, they must give ability to the market participants to sell stocks at declining price and purchase them at increasing price.
2. Commission brokers collect the requests of clients, deliver them in an operating hall and provide implementation.
3. Floor brokers, or exchange brokers, execute in the hall for commission of other brokers which on any reason can't execute a client's request. Exchange brokers take the commission payment from the clients also.
4. Competitive (or floor, or registered) traders carry out operations exceptionally for the account. They have no right to take the commission payment of clients.
There are also associated members (allied members). They have admittance in an operating hall; however they have no authority to make agreements.