Corporate Finance, DeFi, Blockchain, Web3 News
Corporate Finance, DeFi, Blockchain News

The Amsterdam Stock Exchange – one of the oldest extant securities exchanges in the world

The Amsterdam Stock Exchange, also known as the AEX, formally named Euronext Amsterdam, was founded in the early 1600s and is one of the oldest modern-style securities markets in the world.

In the 21st century, it has become very easy even for small-scale investors to trade in securities listed on Euronext Amsterdam, as a wide range of retail brokers online include such securities in their offering. It is also easy for retail traders to use contracts for difference (CFDs) to gain exposure to equity prices without actually buying and selling shares. Using derivatives such as CFDs is especially appealing to small-scale traders, as they are flexible when it comes to the investment amount. You can elect to risk considerably less than what it would cost to buy 100 shares in the company.

Indicies on the Amsterdam stock exchange

The Amsterdam Stock Exchange offers a range of indices that provide a measure of the performance of different segments of the Dutch stock market. Some of the main indices provided by the AEX include the AEX index, which is the most widely-followed index and consists of the 25 largest companies listed on the AEX by market capitalization; the AMX index, which consists of the 25 largest mid-cap companies by market capitalization; and the AScX index, which consists of the 25 largest small-cap companies by market capitalization. The AEX also offers sector-specific indices, such as the AEX Food & Beverage index for companies in the food and beverage sector and the AEX Banks index for companies in the banking sector.

Short facts about the Amsterdam Stock Exchange

Current name: Euronext Amsterdam
Previous name: The Amsterdam Stock Exchange
Dutch name: De Amsterdamse effectenbeurs / Euronext Amsterdam
Foundation: 1602 AD
Location: Amsterdam, the Netherlands
Currency: Euro
Indices: AEX index, AMX index, AscX index

Formation of the Euronext

In September 2000, the Amsterdam Stock Exchange merged with the Brussels Stock Exchange in Belgium and the Paris Stock Exchange in France to form Euronext.

Euronext N.V. is a pan-European bourse that offers trading and post-trading services in Europe. It is incorporated in the Netherlands as a public limited company (naamloze vennootschap). Its registered office is in Amsterdam, while the corporate headquarters are in Paris.

A history that goes back to the 17th century

The exchange in Amsterdam was established in 1602, shortly after the formation of the Dutch East India Company (VOC) that same year. Back then, it was a secondary market for trading VOC shares. Eventually, trading in more securities than just VOC shares began to take place. A very detailed account of the trading at this stock exchange is found in Joseph de lav Vega´s book “Confusion of Confusions” published in 1688.


Open-air trading
The original venue was an older open-air one established in 1530 as a commodity exchange. Not only commodity trading but commodity price speculation was well-established in Amsterdam at this point, with traders speculating chiefly on the price of grain. Later, speculation emerged on herring, whale oil, spices, and tulips.

The Hendrick de Keyser building
In the early 1600s, the city of Amsterdam ordered the construction of an exchange building in Dam Square, not far from the East India House and the Exchange Bank. The new building was erected by Hendrick de Keyser and opened in 1611. Several types of trading took place here, and special sections were devoted to commodity trading or VOC securities trading.

Due to a city bye-law, trading was limited to weekdays from 11 a.m to noon. This naturally created a hectic flurry among the traders, eager to get their trading done within this very limited time frame. Because of the limit imposed on time, liquidity was high.

Unsurprisingly, trading also occurred outside the 11-12 window but not within the building in Dam Square. Trading outside the window was not illegal if it took place somewhere else, so trading clubs flourished.

The Jan David Zocher building
In 1845, a new exchange building constructed by Jan David Zocher opened near the Dam/Damrak. In accordance with the prevailing trends in architecture at the time, it resembled an ancient Greek temple with imposing columns in front.

The Beurs van Berlange
The Beurs van Berlange was a large red brick exchange building constructed on the Damrak in 1896-1903, and used for the exchange in 1903-1914. (Today, it is utilized for cultural events such as exhibitions and concerts.)

The Beursplain building
The exchange moved to a new building in Beursplain 5 in 1914, right next to the old exchange building, and it has remained on this site ever since.

Vendredi 9 Décembre 2022