ABSTRACT
In this chapter, we start by providing an overview of the history of stock exchanges, from the 19th century to the recent period. Then, we put into perspective the current organization of stock markets, with multiple venues and multiple regimes of transparency. Our goal is to introduce the reader to the new organization of stock markets, together with the usual concepts and vocabulary of today’s practitioners involved in execution (brokerage companies, cash traders, regulators, etc.). We also present the recent changes in bond markets. Bond markets – which are mainly OTC (Over-The-Counter) markets, very different from most stock markets – are indeed undergoing changes, mainly because of electronification and new regulations. Throughout this chapter, we mainly focus on Europe, but we sometimes consider the case of the United States, to underline the main differences.
