The Historical Dynamics of US Financial Exchanges

Bjørn N. Jørgensen*, Kenneth A. Kavajecz*, Scott N. Swisher IV*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


The historical dynamics of entry and exit in the financial exchange industry are analyzed for a panel of 327 US exchanges from 1855 through 2012. We focus on economic, technological and regulatory factors. Using novel panel data evidence, we empirically test whether these factors are consistent with existing financial theories. We find that US exchanges are more likely to exit per year after the passage of the Securities Exchange Act. The telephone, literacy and regulation are robust predictors of financial exchange dynamics, whereby an upward trend in literacy is an important driver of exchange entry.
Original languageEnglish
JournalFinancial History Review
Issue number2
Pages (from-to)153-174
Number of pages22
Publication statusPublished - Aug 2021

Bibliographical note

Published online: 14. July 2021


  • Financial exchange
  • Entry
  • Exit
  • Mergers

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