Dr. Jekyll & Hyde: NYSE & the Progressive Era

The article analyzes the attempts at New York Stock Exchange (NYSE) to prevent unfair behavior in the context of stock market transactions before the First World War. It is argued that people in general and stock exchange brokers sometimes follow (lower) instincts in particular – just like the famous Mr. Hyde in Robert Stevenson’s novel. The article analyzes the institutional framework that was supposed to prevent undesirable transactions, examples of how the NYSE raised members in the event of regulatory violations and describes the narrative of the merchant teaching (Commercial Honor) and Nyse preserved long from state regulation. It comes to the conclusion that the self -regulation and the constant adaptation of the rules as well as the integrative – and morally connoted – narrative to improve both the functionality of the market and the regular acceptance of the stock exchange dealers, but that they were unable to finally prevent harmful behavior.