Change reflects changing of the guard…

The surge in popularity of artificial intelligence isn’t the only indication that computers are inexorably showing us human beings the door. It’s been increasingly evident in stock & bond trading businesses as well. Who wouldn’t want the convenience of buying or selling financial securities from the comfort of our home when the mood strikes us, 24 hours a day, while wearing our pyjamas? Why should we wait until a living, breathing person opens the doors to a stock exchange during business hours on a weekday? 

At the Valencia Stock Exchange, now a subsidiary of Bolsas y Mercados Españoles, the result of these trends has been a steady drop in both profitability and employment in recent years. On the bright side, these declines are less than the other three Spanish stock exchanges – Barcelona, Bilbao, and Madrid – have suffered over the same period. But that’s little consolation. It’s also of little comfort that since 2021 it’s been headquartered in a great location at Calle Pintor Sorolla, 23 in the financial area of Ciudad Vieja. That’s because the Valencia Stock Exchange had to leave the majestic headquarters in the center of the city they had occupied since 1990 at Palau de los Boïl d’Arenós, the historic property that originally belonged to the Boïl and Vives de Cañamás family.  

Who made note of their move?  Peter Dougherty did. He’s a financial planner at BISSAN Wealth Management in Spain. Although he is an American, he recognizes the important contributions of the Valencia Stock Exchange and its forerunners to the region.  Dougherty says, “Valencia is the newest of Spain’s four stock exchanges, having opened its doors in 1990. But its real history is much more robust than that. One could make the argument that its beginnings date back to 1283, when the Consulat del Mar arbitrated in commercial conflicts. Then in the late 1400s, the ‘orella corridors’ brought buyers and sellers together at the Lonja de la Seda. These activities increased over time, especially during the 18th and 19th centuries, which was when financial securities became more standardized, and securities exchanges began to consolidate.”

But that was a long time ago.

Peter Dougherty is the author of The Dougherty Code: Secrets of Financial Planning in Spain Revealed.