The Buttonwood Agreement

The Buttonwood Agreement is the founding document of today`s New York Stock Exchange and one of the most important financial documents in U.S. history. [2] The agreement organized securities trading in New York and was signed on May 17, 1792 between 24 brokers outside 68 Wall Street. According to legend, the signature took place under a platanus occidentalis, a wood tree, but this tree may never have existed. [3] The New York Stock Exchange celebrated the signing of this agreement on May 17, 1792 as its creation. [2] In March 1792, 24 major New York traders met secretly at the Corre`s Hotel to discuss ways to bring securities matters in order. Two months later, on May 17, 1792, these men signed a document called the Buttonwood Agreement, named after their traditional meeting point under a button tree. The agreement stated that they would only trade securities between themselves, that they were merely collecting commissions and that they would not participate in the auction. A group of 24 brokers and traders decided that after the financial panic of 1792, it was necessary to preserve the interest of investors and restore confidence in trade and investment. This group met under the tree and signed the Buttonwood Agreement on May 17, 1792. This monumental agreement first set the commercial parameter of the NYSE known today. Participants in the New York outdoor market had long wanted to systematize their actions. In the midst of the tumult of the market crash of 1792, 24 of them gathered under a button-down tree at 68 Wall Street, as legend has it, and promised to deal with each other in the first place and meet minimum commission rates.2 The agreement was an attempt to establish, according to the financial panic of 1792, rules that had not given rules or safety.

and many agreements were rejected. The panic had been caused by the actions of speculator William Duer, who borrowed loans to do business until he realized he could no longer borrow. On May 17, 1792, the Buttonwood Agreement was signed by 24 brokers. The signing took place outside 68 Wall Street in Lower Manhattan, New York, under a button tree. The meeting was to negotiate the terms and rules of the speculative market.