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There is no better time than an anniversary to reflect on what has passed, and to look toward the future. As the Alberta Stock Exchange (ASE) celebrates 80 years of trading in the province, it can be justifiably proud of its success as an integral part of the local business community. Indeed, through good times and bad, the ASE has become a leading force in determining the face of industry in Alberta.
The industry-run, self-regulating organization bears little in common with its rather inauspicious beginnings. In the early years, market prices of stocks trading were written up on a chalk board. Today, the ASE boasts an innovative computerized system that has been credited for enabling it to handle a recent record-breaking number of trades. The ASE-developed system has been bought by other exchanges around the world, and has prompted a number of representatives from international exchanges to come and view firsthand its operating systems in action.
The volume of trading on the ASE is another indicator of its growing contribution to the shaping of Alberta's economic landscape. In 1942, for example, the total volume of trading was a lowly 1.2 million shares; by 1987, that figure had ballooned to 740 million shares. In late 1993, the exchange was trading an average of 10 million shares a day, and had already shattered 1992's all-time record of 868 million shares.
But while some aspects of the ASE have undergone revolutionary change over the years, others remain the same. When it first started out, the exchange represented mostly small, local firms short on cash but big on dreams and potential. In 1993, 80% of the listings on the exchange were Alberta-based, junior-sized companies. And of those companies, 80% have direct links to the oil and gas industry. Just as the Turner Valley oil boom led to the incorporation of the Calgary Stock Exchange in 1913 (the name was changed to the Alberta Stock Exchange in 1974), so the oil and gas industry remains the dominant leader on today's trading floor.
According to ASE President Tom Cumming, this dominance is a simple fact of life. "It's only natural that oil and gas would be a driving force, but it's also provided us with a core to build from."
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