Buttonwood Agreement

There`s been a lot of speculation that it all started under a tree. A tree with buttons, to be precise. Image: Representation of merchants under the wooden button tree. Note: The button tree is also called the Sycamore tree. To solve this problem, on May 17, 1792, a group of men gathered under a wood-made button tree (today these trees are called Sycamores) outside 68 Wall Street and signed an agreement. (There are some doubts as to whether the agreement was actually signed under this tree, but it became a popular Wall Street icon until it fell into a storm on June 14, 1865.) The agreement was an attempt to establish, after the financial panic of 1792, certain rules on which there were no rules or guarantees and many transactions were refused. 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. In short, the agreement had two provisions: 1) brokers had to behave only with each other, thus eliminating the incense, and 2) the commissions had to be 0.25%. It reads: Long before the One World Trade Center overlooked Lower Manhattan, an American sycamore or wood tree on Wall Street was the highest thing in the area and the mall. 225 years ago, on May 17, 1792, 24 brokers and traders under the same tree signed the so-called Buttonwood Agreement, which set the trading parameters in the first incarnation of the New York Stock Exchange. In March 1792, 24 major New York traders met secretly at the Corre`s Hotel to discuss ways to get the securities business 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. 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] A group of 24 brokers and traders decided that after the financial panic of 1792, it was necessary to preserve investor interest and restore confidence in trade and investment.