Overview of MS4X
The Miami Stock Exchange (MS4X) is a regional exchange that offers stock, currency and futures trading. According to its website, it offers “fully developed electronic software, processing and distribution services to the global financial community.” It is regarded as a major trading center for Latin American and Caribbean countries and a regional exchange. It is referred to as such because it is a stock exchange that is not located within the US’ primary financial center, i.e. from outside of New York City; therefore, any stock exchange that falls under that is referred to as a regional exchange in the US. Some of the countries that make use of the MS4X are: Argentina, Barbados, Brazil, Chile, Colombia, Dominica Republic, Mexico, Panama and Peru. The MS4X is also considered a hub for the 27 Latin American and Caribbean exchanges, commonly referred to as the G27.
How it works
The MS4X provides electronic trading software and also acts as an exchange for currencies. Electronic trading software, as the name suggests, refers to programs and tools that traders use to monitor and track market activity, conduct analyses, and oversee the overall trading process and experience. It is worth noting that trading software differs based on what is being traded, i.e. Forex trading software differs from that of stock trading. In its capacity as an exchange for currencies, the MS4X allows traders to exchange one currency for another, however, as much as it is not a trading floor, it does permit traders who transact on behalf of investors.
How it compares to other stock exchanges
Relative to other major stock exchanges, such as the New York Stock Exchange, the MS4X trades in over-the-counter securities from the aforementioned regions and local companies that are not considered big enough to register on a national exchange. For example, trading on the MS4X differs from indices trading on the London Stock Exchange (LSE), as the latter is the primary stock exchange in the United Kingdom and the largest in Europe. This has enabled the LSE to have a greater reach and offer alternatives and options for large, medium-sized and small enterprises, while the MS4X does not.
According to the Corporate Finance Institute (CFI) regarding the LSE, “The London Stock Exchange (LSE), which is based in London, the United Kingdom, is one of the leading stock markets in the world.” Adding, “The London Stock Exchange enables companies to join the equity market to raise capital and increase their profile. Companies of different sizes can list on the LSE as the bourse runs several markets for listing. It also offers different ways to raise capital.”
The US boasts several other regional exchanges, other than the MS4X, such as the Chicago Stock Exchange and the National Stock Exchange. All the regional exchanges also have certain guiding regulations for operating, much like the national exchanges, with oversight being conducted by the Securities and Exchange Commission (SEC). Additionally, in order to be listed on an exchange, a company must meet the stipulated requirements of that particular exchange. Per SEC requirements, listed companies must publish their financial statements and disclosures through quarterly and annual reports.
