Nasdaq — the world's first fully electronic stock exchange, which changed the principles of trading securities and became a symbol of technological progress in financial markets. Its history is a journey from an experiment with automated quotations to a global center for high-tech companies.
History of Nasdaq's creation
Prerequisites for emergence
In the 1960s, the US stock market faced serious problems: price opacity, slow transaction processing, and high dependence on telephone brokers. The National Association of Securities Dealers (NASD) began to seek a technological solution that would enhance the efficiency and fairness of trading.
Foundation of Nasdaq
In 1971, the National Association of Securities Dealers Automated Quotations — Nasdaq was launched. Unlike traditional exchanges like the NYSE, Nasdaq initially did not have a physical trading floor. All quotes were transmitted through a computer system, which was a revolution for that time.
In the initial stage, Nasdaq provided automated quotations, but the trades themselves were still conducted over the phone. Nevertheless, this significantly increased market transparency and reduced the information gap between participants.
Transition to electronic trading
In the 1980s and 1990s, Nasdaq actively developed electronic trading systems. A key step was the launch of the NASDAQ Small Order Execution System (SOES), which allowed for the automatic execution of small trades. This sped up trading and reduced the influence of human factors.
Exchange of technology giants
It was Nasdaq that became home to companies of the new technological order. From the 1980s to the 2000s, it hosted Microsoft, Intel, Cisco, and later — Amazon, Google, Meta, and Tesla. The exchange established a reputation as a platform for innovative and rapidly growing companies.
Global influence
Today, Nasdaq is not just an exchange, but an international technology corporation providing:
trading infrastructure,
stock indices (including Nasdaq Composite and Nasdaq-100),
solutions for capital markets and fintech across the globe.
The significance of Nasdaq for the global economy
Nasdaq proved that technology can radically change financial markets. It became the standard for electronic trading and played a key role in its development:
stock markets,
venture capital,
global digital economy.
Today, Nasdaq is associated with innovation, growth, and the future of the financial system.
