Title

Ending a NYSE tradition: The 1975 Unraveling of Broker's fixed commissions and its Long term impact on Financial Advertising

Authors

Michael Coyne, Fairfield UniversityFollow

Document Type

Article

Article Version

Publisher's PDF

Publication Date

2007

Abstract

On May 1, 1975 (“Mayday”), the New York Stock Exchange jettisoned its 183 year old tradition of fixed rate broker commissions in favor of competitive, negotiated rates. While many events, institutions, and individuals helped inspire this controversial policy change, this paper focuses on the pivotal role played by one Exchange insider, NYSE President Robert Haack. Despite his original stalwart defense of fixed rates, Haack came to support rate deregulation. Haack’s rationale for endorsing negotiated rates is evaluated as well as how the new commission fee structure led to surprising changes in the advertising landscape on Wall Street. This paper argues that Mayday transformed the securities industry in more ways than anyone had envisioned at the time.

Comments

Copyright 2007 Economic & Business History Society

Archived with permission from the copyright holder.

Publication Title

Essays in Economic and Business History

Repository Citation

Coyne, Michael, "Ending a NYSE tradition: The 1975 Unraveling of Broker's fixed commissions and its Long term impact on Financial Advertising" (2007). Business Faculty Publications. 103.
https://digitalcommons.fairfield.edu/business-facultypubs/103

Published Citation

Traflet Janice and Coyne, Michael P. "Ending a NYSE tradition: The 1975 Unraveling of Broker's fixed commissions and its Long term impact on Financial Advertising", Essays in Economic and Business History, Volume 25, 2007, p.131-141.

Peer Reviewed