The Role of Regional Security Exchanges

The Role of Regional Security Exchanges by James E. Walter examines an often-overlooked but vital segment of American financial markets. While the New York and American stock exchanges dominate attention, Walter turns to regional exchanges—institutions such as those in San Francisco, Los Angeles, and the Midwest—to evaluate their functions, performance, and potential contributions to capital formation. Drawing on original records, interviews with exchange officials, and corporate surveys, he analyzes how these exchanges interact with national markets and over-the-counter trading. In doing so, Walter raises fundamental questions about efficiency and appropriateness: how well do regional exchanges fulfill their assigned roles, and should those roles be reconsidered?

The study situates regional exchanges within the broader structure of securities distribution, addressing multiple trading in nationally listed issues, the challenges of maintaining liquidity, and the competitive pressures from over-the-counter channels. Walter explores absolute measures of effectiveness—such as trading continuity, absorption capacity, and risk—alongside case studies of mergers and consolidations among regional exchanges. His analysis highlights both the limitations and unrealized potential of these institutions, particularly their ability to support smaller, youthful corporations and diversify ownership. While deeply grounded in financial research, the book is accessible to educated readers outside economics, offering clear argumentation and a synthesis of technical and institutional insights. By illuminating the neglected role of regional markets, The Role of Regional Security Exchanges provides scholars, policymakers, and investors with an essential framework for rethinking the balance of national and regional finance in the mid-twentieth century.

This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1957.