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New Board
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The New Board was an organization of curb-stone brokers established in 1836 in New York City to compete with the New York Stock and Exchange Board. It folded in 1848.[1]
History
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Formation
The first local rival of the New York Stock Exchange (NYSE), the New Board emerged in 1835[1] among the rough and tumble conditions of the very speculative curb-side trading during the down-turn in the market in general.[2] The "curb" or "outside" trading the exchange used was a system in which "brokers and dealers traded directly with each other in the street near the exchange."[1] This board grew out of a failed attempt of these brokers to work with the Wall Street board.[3]
Bloomberg writes that it formed "in response to an economic boom and the formation of the first railroad corporations."[1] According to historian Robert Sobel, the New Board was the first of a number of alternative set-ups that occurred in New York trading during periods of high volume, succeeding at first, setting up rival organizations and then succumbing during ensuing less bullish times.[3]
Boom and decline
At first, the new organization was very successful, growing, while Wall Street was in a general decline.[3] To compete, the NYSE quickly began offering a second daily opportunity to buy or sell securities.[1] After its immediate success and strong rivalry, it declined, with most members going bankrupt within three years of its founding. Nevertheless, it remained larger than the older board until 1845.[3] The New Board's brokers were "crushed" by the Panic of 1837 and the recession that followed. The exchange then faded before folding in 1848.[1]
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