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I'm also confused by the confusion. My German broker shows me something like ten exchanges (all in Germany) in the app where I can trade securities. I always th

I'm also confused by the confusion. My German broker shows me something like ten exchanges (all in Germany) in the app where I can trade securities. I always thought it was weird that the US, being by far the biggest player in the market, only had one exchange. (Even though I just learned in this thread that there are actually multiple already.)

Galanwe 2y ago
It's historical. The US always had the same currency, so shares are almost by design fungible between markets. Also the rise of Nasdaq made for a quick transition to broker-dealer (market maker driven) markets, which combined with fungible shares and NBBO lead to a centralisation of exchanges early on. On the contrary, Europe had historically one market of primary listing per country/currency, and it took a long time to see the emergence of MTFs centralizing books in a single place. Don't be fooled though, the vast majority of European liquidity is now on CBOE (the leading MTF) and LSE (the leading primary market).
TheAlchemist 2y ago
There are numerous exchanges in the US. The trading is mostly done on NYSE / NASDAQ although some others do trade a meaningful volume. What happens when you click in your app on 'buy' or 'sell' button is a different story. Mostly, it will never trade on an exchange actually. Especially in the US. Look up 'payment for order flow' if you're interested in it. Short version is - retail trades don't have any 'alpha' - you can just collect the spread executing it. And companies are willing to pay for that.
immibis 2y ago
If this was NYSE Montana, nobody would care. Texas is important news because all the big companies are currently moving to Texas to avoid regulations.