1908

One such rival that emerged was the long-forgotten Consolidated Stock and Petroleum Exchange of New York that grew out of a merger between the New York Petroleum Exchange and Stock Board and the New York Mining Stock and Petroleum Exchange (Brown et al 2008). Beginning in 1885, its 2,403 members began operations on what became known as “The Little Board,” mere blocks from Wall Street (Michie 1986). In its 40 year history, the Consolidated maintained 23 percent market share (Brown et al 2008). In 1908, the number of shares of common stock traded on the NYSE, the Consolidated, and an unofficial “curb” market consisting of independent brokers totaled 424 million. Less than half of this, however, 46.5 percent, was conducted on the NYSE (Michie 1986). Despite an earlier gentleman’s agreement between the New York Mining Stock Exchange barring it from trading NYSE stocks, the Consolidated aimed to trade only the most liquid stocks on the NYSE. In addition odd-lot trading was offered as well as a longer settlement period. A commission rate of only 1/16 percent was charged, undercutting the New York Stock Exchanges’ rate and attracting further business. The New York Stock Exchange was forced to charge 1/8 percent, having passed previous rules restricting any further reduction in this price (Michie 1986). This direct competition continued until legal issues forced the Consolidated to close in February 1926 (Brown et al 2008).