The Buttonwood Agreement, which took place on May 17, 1792, was an effort to organize securities trading in New York City that preceded the formation of the New York Stock & Exchange Board now called the
In brief, the agreement had two provisions: 1) the brokers were to deal only with each other, thereby eliminating the auctioneers, and 2) the commissions were to be 0.25%. It reads as follows:
We the Subscribers, Brokers for the Purchase and Sale of the Public Stock, do hereby solemnly swear and pledge ourselves to each other, that we will not buy or sell from this day for any person whatsoever, any kind of Public Stock, at a less rate than one quarter percent Commission on the Specie value and that we will give preference to each other in our Negotiations. In Testimony whereof we have set our hands this 17th day of May at New York, 1792.