Signing of the Buttonwood Agreement

Background. In March 1792, twenty-four leading merchants met secretly at Corre's Hotel to discuss bringing order to the securities business. Two months later, on May 17, 1792, a group signed the Buttonwood Agreement; the passages present the March meeting and the May signing as sequential events separated by a two-month interval, though they do not explicitly state that the meeting caused the signing. The agreement is recognized as the founding document of the New York Stock Exchange.

Terms of the Agreement. The agreement bound the signers to give preference to one another in securities sales and set a floor commission rate charged to clients. It organized securities trading in New York City, establishing a framework for the exchange that would later operate under these rules.

Historical Legacy. The New York Stock Exchange celebrates the signing of this agreement as its founding. The document is considered one of the most important financial documents in U.S. history. The name 'Buttonwood' refers to the traditional meeting place under a buttonwood tree, though the signing itself did not necessarily occur there.