Philadelphia Stock Exchange – Definition

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Philadelphia Stock Exchange (PHLX) Definition

The Philadelphia Stock Exchange, abbreviated as PHLX, a combination of NASDAQ OMX, was the 1st United States securities exchange. Today, it also lays stress on index options, equity and currency.  The NASDAQ OMX Group owns it. Its old name is the Board of Brokers of Philadelphia.

A Little More on What is the Philadelphia Stock Exchange – PHLX

The Philadelphia Stock Exchange was the 1st formal exchange in the United States — though the NYSE came into existence 2 years earlier. The PHLX is also considered to be the 1st exchange of electronic trading. In 1975, it commenced routing of stock order and an execution system known as Philadelphia Automated Communication & Execution system (PACE). It was used to link computers and made the immediate order execution possible.

PHLX proposed currency options in 1982. Within 6 years, their per day trade was four million US dollars in the underlying value.

PHLX formed the 1st floor-based exchange in 2004 to move from a seat based to share-based for profit company.

The NASDAQ OMX Group purchased the Philadelphia Stock Exchange In 2008. It changed the PHLX name to NASDAQ OMX PHLX. Its focus was the options. Nowadays, it trades in above $2600 settled options, equity options and sector index options. It is also presently the 3rd biggest options market in the US with a seventeen percent share.

The Philadelphia Stock Exchange has an extensive sector indexes library, including widely used PHLX BKX (KBW Bank Index), the PHLX XAU (Gold or Silver Sector Index), and the PHLX SOX (Semiconductor Sector Index). The investors cannot purchase and sell them. At the exchange, many other indexes tracked. They can be traded through options.

PHLX estimates and spreads intraday pricing info on the below-mentioned sector indexes. They have been listed with the ticker symbol and name. These are the root symbols for the related options.

   BKX (PHLX KBW Bank Index)

   KIX (PHLX KBW Insurance Index)

   MFX (PHLX KBW Mortgage Finance Index)

   KRX (PHLX KBW Regional Banking Index)

   XCM (PHLX Chemical Sector Index)

   DFX (PHLX Defense Sector Index)

   RXS (PHLX Drug Sector Index)

   XEX (PHLX Europe Sector Index)

   XAU (PHLX Gold/Silver Sector Index)

   HGX (PHLX Housing Sector Index)

   SHX (PHLX Marine Shipping Sector Index)

   MXZ (PHLX Medical Device Sector Index)

   OSC (PHLX Oil Service Sector Index)

   XRE (PHLX Retail Sector Index)

   SOX (PHLX Semiconductor Sector Index)

   SXP (PHLX Sports Sector Index)

   UTY (PHLX Utility Sector Index)

   SGV (SIG Gaming Index)

   SCP (SIG KCI Coal Index)

   EPX (SIG Oil Exploration & Production Index)

   SRW (SIG Railroad Index)

   STQ (SIG Steel Producers Index)

References for Philadelphia Stock Exchange

Academic Research on Philadelphia Stock Exchange (PHLX)

Are foreign currency options overvalued? The early experience of the Philadelphia Stock Exchange, Goodman, L. S., Ross, S., & Schmidt, F. (1985). Journal of Futures Markets, 5(3), 349-359. This research is based on the early experience of the PHLX (Philadelphia Stock Exchange) and it is evaluated that the options of foreign currency are overvalued or not.

The Philadelphia stock exchange: adapting to survive in changing markets, Caskey, J. P. (2004). Business History Review, 78(3), 451-487. This paper explains the role of PHLX (Philadelphia Stock Exchange) and highlights that it has the adaptable trend in order to stay in the changing markets.

The Evolution of the Philadelphia Stock Exchange: 1964-2002, Caskey, J. (2003). 1964-2002. This study evaluates the development of the PHLX (Philadelphia Stock Exchange) which has been the oldest stock exchange of America from 1964 to 2002. The author provides information on how it became successful in attracting enough trading orders volume so that it may be able to cover the operating cost meanwhile and assist its members. Also about how PHLX adapted to stay with great changes in the framework of the securities market.

The Evolution of the Philadelphia Stock Exchange, Caskey, J. P. (2004). Federal Reserve Bank Of Philadelphia Business Review, 2004(Q2), 18. The author describes how the PHLX (Philadelphia Stock Exchange) evolved and the main factors that have an important role in its long life. He mentions some of the unstable transformations in the securities market of the United States in present decades and throws light on the importance of regional stock exchanges greatly overlooked.

The Philadelphia Stock Exchange and the City It Made. By Domenic Vitiello, with George E. Thomas, Sylla, R. (2017). Pennsylvania Magazine of History and Biography, 135(1). PHLX (Philadelphia Stock Exchange) is the very 1st stock exchange of America. It shaped the city and developed it. Its member companies have a great influence on the place of the city in the global economy. After the 20th century, the exchange stagnation occurred which led to the power loss of Philadelphia in the national and international economy. The revival of the exchange after the Second World War is a striking story. But it describes the limits of economic growth in post-industrial cities. Finally, in 2008, PHLX became a large worldwide institution after being merged with NASDAQ.

Vitiello Domenic with Thomas George E., The Philadelphia Stock Exchange and the City it Made. Philadelphia: University of Pennsylvania Press, 2010. xvi + 253pp …, Teaford, J. C. (2010). Urban History, 37(3), 485-486. This paper discusses the changes brought by PHLX (Philadelphia Stock Exchange) in the city of the United States where it deals. The author explains the positive role of PHLX.

The Philadelphia Stock Exchange and the City It Made. By Domenic Vitiellowith George E. Thomas. Philadelphia: University of Pennsylvania Press, 2010. Pp. xvi, 253 …, Rousseau, P. L. (2011). The Journal of Economic History, 71(3), 815-816. This paper elaborates the role of PHLX (Philadelphia Stock Exchange) in the city of the United States where the traders work. The author reviews the press publishing of Domenic Vitiellowith and Thomas George on PHLX.

Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change Relating to Access to XLE on Phlx’s Options Floor, Morris, N. M.  This article mentions the regulatory organizations particularly the PHLX (Philadelphia Stock Exchange). It presents an overview of the filing notice of proposed rule change in relation to XLE access on the options floor of PHLX.

Why is there a Philadelphia Stock Exchange?, Belsky, G. (1998). Money, 27(4), 138-143. This research has been carried out to explore the reasons for the establishment of PHLX (Philadelphia Stock Exchange). The author highlights why PHLX has become the need of the hour.

The Philadelphia Stock Exchange: A study in tradition, adaptation, and survival (Pennsylvania)., Shore, G. B. (2004).  The materials in the collection document of the PHLX (Philadelphia Stock Exchange) history and exchange activities are stated in this paper for the period of 1746 to 2005. The collection items are related to business transactions and sales, admin functions, people, publications, symposiums and conferences and innovative technologies. It is in many formats but what matters is the business record and sales.

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