In an academic sense, stock exchanges shape global finance by providing a secure platform for trading stocks, derivatives, and commodities, influencing investments and economic stability. More practically, their performance reflects broader economic conditions and market sentiment across regions. Often, they are the face of an entire economy.
This article highlights some of the largest stock exchanges as of November 2024, including the New York Stock Exchange and NASDAQ. These exchanges facilitate billions in daily transactions and are key indicators of economic strength and overall corporate performance.
Let’s briefly discuss these largest stock exchanges and what sets them apart in the global competitive market.
Established in 1792, NYSE ranks first among the top 10 stock exchanges in the world by market cap exceeding $31,649,898 million. The NYSE is known for its diverse range of listed companies, including some of the world’s most recognised brands: NVIDIA, Apple, Microsoft, and HDFC Bank. The secure trading environment attracts billions in daily transactions, making it a key player in the global economy.
NASDAQ
- Founded in: February 1971
- Country: United States
NASDAQ (National Association of Securities Dealers Automated Quotations) has become the second-largest stock exchange. It is known for its focus on technology and growth-oriented companies. With a market cap of over $30,128,325 million, NASDAQ lists many of the world’s leading tech giants, including Tesla, Meta, and Amazon. Its electronic trading platform offers high-speed trade execution for institutional and retail investors.
Shanghai Stock Exchange (SSE)
- Founded in: November 1990
- Country: China
The Shanghai Stock Exchange (SSE) secured a third position in the top 10 stock exchanges in the world. As one of the largest stock exchanges in Asia, with a market cap of around $7,170,382 million, it plays a crucial role in China’s economy. Earlier known as the ‘Shanghai Sharebrokers Association,’ it was the first stock exchange established in China in 1891, making it one of the oldest exchanges globally. Although it ceased operations for nearly three decades, the exchange was re-established in its current form in November 1990. Over the years, SSE has attracted several international investors and remains a go-to platform for trading stocks, bonds, and funds.
Japan Exchange Group (JPX)
- Founded in: January 2013
- Country: Japan
The Japan Exchange Group (JPX) operates the Tokyo Stock Exchange and the Osaka Securities Exchange, which merged in 2013 to form its current identity. The Osaka Exchange, established in 1949, played a key role in Japan’s financial history, even before the merger. Today, with a market cap exceeding $6,400,158 million, JPX is one of the major stock exchanges in Asia’s financial landscape. Large corporations like Toyota, Sony, and SoftBank are listed under JPX, and its advanced trading technology enhances corporate governance and attracts foreign investments.
Euronext
- Founded in: September 2000
- Country: Europe
Euronext stands fifth among the top 10 stock exchanges in the world and is the largest in Europe. Its roots trace back to the world’s oldest stock exchange in Bruges, established in 1285, Antwerp (1485), and Amsterdam (1602), along with the Paris Bourse, founded in 1724, highlighting its long-standing financial legacy. Today, Euronext operates regulated markets (securities and derivatives) in Amsterdam, Brussels, Dublin, Milan, Paris, Lisbon, and Oslo. With a total market cap of around $5,687,221 million, Euronext enlists companies such as Capgemini, L’Oréal, and Sanofi.
Bombay Stock Exchange (BSE)
- Founded in: July 1875
- Country: India
BSE is Asia’s oldest stock exchange and one of the largest in the world. As of November 2024, it recorded a market cap of around $5,340,000 million, making it sixth on the list of major stock exchanges. The BSE includes renowned companies like Reliance Industries, Tata Consultancy Services, Cipla, and Nestle India. It offers investments in equity, debt instruments, derivatives, currencies, and mutual funds. The popular equity index, BSE SENSEX, is India’s most widely followed stock market model.
National Stock Exchange (NSE)
- Founded in: November 1992
- Country: India
The NSE is known for its modern, electronic trading system. As one of the largest stock exchanges worldwide, it plays a crucial role in India’s economy. The NSE enables the trading of various securities, including equities, derivatives, and debt instruments. Major companies like Infosys, Reliance Industries, and Tata Motors are listed on the NSE.
Shenzhen Stock Exchange (SZSE)
- Founded in: December 1990
- Country: China
China’s Shenzhen Stock Exchange (SZSE) is known for its innovation and fast growth. With a market capitalisation of over $4,672,988 million, the SZSE hosts various companies like Midea and BYD. The exchange mainly focuses on small and medium-sized enterprises to promote the entrepreneurial spirit. SZSE also prioritises tech advancements in trading to enhance investors’ overall experience.
Hong Kong Stock Exchange (HKEX)
- Founded in: February 1891
- Country: China
Founded in 1891 as the Association of Stockbrokers in Hong Kong, HKEX ranks ninth on the list of stock exchanges by market cap. It is a gateway for international investors who want to explore Asian markets. HKEX offers diverse products, including equities, real estate investment trusts, debt securities, commodities, cross-currency swaps, and more. It is known for its advanced risk management and infrastructure, as well as real-time data services.
TMX Group (TSX)
- Founded in: May 2008
- Country: Canada
TMX Group handles major stock exchanges, such as the Montreal Exchange, Toronto Stock Exchange, and TSX Venture Exchange. It is one of the largest platforms in Canada that allows investors to trade equities, derivatives, fixed income, and energy (commodities like oil and natural gas). With a market cap of $3,573,335 million, TMX Group ranks tenth among the top 10 stock exchanges in the world.
Frequently Asked Questions (FAQs)
1. Who owns the largest stock exchange, the NYSE?
The NYSE is the leading stock exchange, and the Intercontinental Exchange, an American multinational financial service company, owns it.
2. Which is the oldest stock exchange in the world?
Amsterdam Stock Exchange is known to be the world’s oldest stock exchange and was started by the Dutch East India Company in 1602. What’s interesting to note is that Euronext was formed by merging the Amsterdam Stock Exchange, Paris Bourse, and Brussels Stock Exchange.
3. What was the first US stock exchange?
The Philadelphia Stock Exchange was the first exchange established in the US in 1790. It was later owned by NASDAQ in 2007.