# Exchanges > Exchanges are regulated marketplaces where buyers and sellers trade. Learn what exchanges do, the major ones worldwide, how they make money and listing rules. Source: https://learn.tradelabsai.com/market-structure/exchanges/ Track: Market Structure · Level: Intermediate · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Exchanges", https://learn.tradelabsai.com/market-structure/exchanges/ An exchange is a regulated marketplace that brings buyers and sellers together under one set of rules. It runs the order book and matching engine, publishes prices, lists securities that meet its standards and supervises trading. When people talk about "the stock market", they usually mean exchanges such as the New York Stock Exchange or Nasdaq, but exchanges exist for futures, options, currencies and crypto too. ## What an exchange does 1. **Matches orders.** Its [[matching-engines|matching engine]] pairs buy and sell orders under fixed rules such as price time priority. 2. **Publishes prices.** Every trade and quote is distributed as market data, so everyone sees the same prices. 3. **Lists securities.** Companies apply to list their shares and must meet standards on size, governance and reporting. 4. **Sets and enforces rules.** Trading hours, order types, tick sizes, halts and member conduct. 5. **Runs auctions** at the open and close. See [Opening and Closing Auctions](https://learn.tradelabsai.com/market-structure/opening-and-closing-auctions/). Clearing and settlement are usually handled by a separate [[clearing-houses|clearing house]], though some exchange groups own their own. ## Major exchanges around the world | Exchange | Main products | Notes | |---|---|---| | New York Stock Exchange (NYSE) | US stocks | Founded on the 1792 Buttonwood Agreement; part of ICE | | Nasdaq | US stocks, especially technology | The first electronic stock market, launched 1971 | | CME Group | Futures and options | Chicago Mercantile Exchange, CBOT, NYMEX and COMEX | | Cboe | Options, stocks, volatility products | Home of the VIX index | | London Stock Exchange | UK stocks | Part of the LSEG group | | Euronext | European stocks | Exchanges in Paris, Amsterdam, Milan and other cities | | Japan Exchange Group | Japanese stocks and derivatives | Tokyo Stock Exchange | | Hong Kong and Shanghai exchanges | Chinese and Asian stocks | Linked by Stock Connect programmes | Crypto exchanges such as Coinbase and Kraken perform some of the same functions but also hold customer funds and often act as broker and custodian, which traditional exchanges do not. See [Centralized vs Decentralized Exchanges](https://learn.tradelabsai.com/crypto/cex-vs-dex/). ## How exchanges make money - **Trading fees** charged to members, often with maker rebates and taker fees. - **Market data fees** for real-time and historical data. See [Market Data Fees](https://learn.tradelabsai.com/orders/market-data-fees/). - **Listing fees** paid by companies. - **Technology and connectivity,** including co-location services. See [Co-Location](https://learn.tradelabsai.com/infrastructure/co-location/). ## Exchanges and fragmentation In the United States, a stock listed on the NYSE can trade on many other exchanges and venues. Rules require trades to happen at or better than the best displayed price across all of them, called the national best bid and offer. Brokers use [Order Routing and Smart Order Routing](https://learn.tradelabsai.com/orders/order-routing/) to find the best venue. Off exchange venues include [ECNs](https://learn.tradelabsai.com/market-structure/ecns/), [Dark Pools](https://learn.tradelabsai.com/market-structure/dark-pools/) and wholesale market makers, and a large share of US stock volume now trades off exchange. ## Members and access Only member firms can trade directly on most exchanges. Individuals reach the exchange through a broker that is a member or works with one. Professional firms may use [Direct Market Access and Sponsored Access](https://learn.tradelabsai.com/orders/direct-market-access/) to send orders straight to a chosen exchange's order book. ## Why it matters to traders - **Where you trade affects your fees and fills,** especially for active traders. - **Exchange rules** determine trading hours, halts and order types you can use. - **Listing standards** offer some protection: exchange listed companies must file regular financial reports. Stocks that trade off exchange, in OTC markets, often have weaker disclosure. See [OTC Markets](https://learn.tradelabsai.com/market-structure/otc-markets/). ## Frequently asked questions ### What is the largest stock exchange in the world? By total market value of listed companies, the NYSE is the largest, followed by Nasdaq. ### Can I trade directly on an exchange? Individuals trade through brokers that are exchange members or route to them. Direct membership is for institutions. ### What is the difference between an exchange and a broker? An exchange runs the market where orders are matched. A broker holds your account and sends your orders to exchanges or other venues. ## Sources - U.S. Securities and Exchange Commission, [How stock markets work](https://www.investor.gov/introduction-investing/investing-basics/how-stock-markets-work) - Wikipedia, [Stock exchange](https://en.wikipedia.org/wiki/Stock_exchange) ## Continue learning - Next lesson: [ECNs](https://learn.tradelabsai.com/market-structure/ecns/) - Related: [Market Basics](https://learn.tradelabsai.com/markets/market-basics/): How financial markets work: exchanges, brokers, the order book, bids and asks, market makers and how millions of orders become one live price. - Related: [ECNs](https://learn.tradelabsai.com/market-structure/ecns/): An ECN is an electronic system that matches buy and sell orders directly. Learn how ECNs work, their fees and rebates, ECN forex accounts and their role today. - Related: [Dark Pools](https://learn.tradelabsai.com/market-structure/dark-pools/): Dark pools are trading venues that do not display orders before trades happen. Learn why they exist, how they work, the concerns about them and how they affect you. - Related: [Matching Engines](https://learn.tradelabsai.com/orders/matching-engines/): A matching engine is the system that pairs buy and sell orders on an exchange. Learn price time priority, pro rata matching, auctions and why it matters to you. - Related: [Clearing Houses and Central Counterparties](https://learn.tradelabsai.com/market-structure/clearing-houses/): Clearing houses stand between buyers and sellers so every trade is honoured. Learn how central counterparties work, margin, default funds and why they matter. - Related: [OTC Markets](https://learn.tradelabsai.com/market-structure/otc-markets/): Over-the-counter markets trade directly between parties instead of on an exchange. Learn how OTC markets work for stocks, bonds, forex and derivatives.