A story nearly as old as the stock exchange
The Amsterdam stock exchange, now known as Euronext Amsterdam, is considered to be the world’s oldest functioning stock exchange. Its roots go back to 1602, when it was established to help fund the Eighty Years’ War.
How the exchange was born
In 1567, the Spanish Empire gained control of a wide area of the Low Countries, triggering the Eighty Years’ War as the Dutch fought to regain control of their country. At this time, a key source of Dutch income came from merchants, who relied heavily on sea trade. They would buy spices from the Portuguese, who had mastered the spice routes in the Far East, and resell them to Dutch buyers. This was the beginning of the Amsterdam stock exchange, arguably the world’s first stock market, and certainly the first truly liquid stock market. However, in the course of the war, the Spanish gained control of Portugal, and effectively put a stop to this trade.
A heroic act
In 1622, with the war still ongoing, the Spanish side attempted to blow up the Amsterdam stock exchange building, in order to limit funding for the Dutch war effort. At the time, the exchange building was built on arches over the Rokin canal. The Spanish soldiers managed to moor a ship filled with gunpowder under the building. Luckily, a little orphan boy discovered the ship and raised the alarm. The boy’s quick action saved the city from disaster. As a reward, he was granted his greatest wish: to play the drum alongside other orphans inside the Amsterdam exchange building itself, where the building’s excellent acoustics would magnify the sound of the drums.
Celebrating today: Exchange Drumming Day
To this day, Euronext Amsterdam continues this tradition by inviting school children from 6 to 12 years old to play the drums inside the exchange building. Trading on the stock exchange typically opens with a Gong Ceremony, broadcast on the Dutch business news channel RTL Z, where special guests strike the Gong to mark the start of the trading day. On Exchange Drumming Day, school students become the special guests.
The children are each given drums to play, and can explore the impressive trading floor while drumming enthusiastically. They then take part in a traditional Gong Ceremony and the Amsterdam Gong is struck to remember the heroic actions of the little orphan boy many years ago. The programme combines fun with education, including a short lesson on the stock exchange and financial literacy in advance of the event when possible. The fun-filled day is one that Euronext hopes to continue hosting for many years into the future.
Inviting children to participate in a stock exchange event like this one is an example of ‘learning by doing’, and supports our company purpose to shape capital markets for future generations. It is one of a number of activities that Euronext Amsterdam deploys throughout the year to improve financial literacy.
To see how the last Exchange Drumming Day went, watch the video: Exchange Drumming Day 2024
Other Amsterdam traditions: an exchange rooted in history
The Amsterdam stock exchange prides itself on its ability to uphold important traditions. To this day, a statue of Mercury is still handed out to listing companies on their first day of listing. Mercury is the Roman god of communication, travel and trade. For centuries, he has symbolised the exchange in the Netherlands in many guises. As early as the 17th century, a statue of Mercury adorned the main facade of the Beurs van Hendrick de Keyser in Amsterdam. The figure of Flying Mercury has been associated with the Amsterdam exchange trading since 1845 when King Willem II bestowed the first statue at the opening of the Beurs van Zocher, and today new issuers are given a replica of the statue to mark their listing on Euronext.
Perpetual bond
The world’s oldest bond still paying interest is a 2.5% perpetual loan issued in 1624 by the Lekdijk Bovendams water board. This bond, worth 1200 guilders, was issued to finance levee repairs after a burst. What has made the 1624 debenture so special is the fact that after nearly four centuries, it still pays interest, €15 annually.
This bond symbolises financial reliability and highlights the Netherlands’ financial strength, rooted in its historic battle against water. This constant threat necessitated cooperation and financial preparedness, even among rivals like the Bishop of Utrecht and the Count of Holland. In September, we once again paid out the dividend to charity.
Gong ceremony
The gong tradition, however, goes back even further, to 1592 to be precise. That year, the Amsterdam city council tried to create order and regularity in trading, which then took place at the Nieuwe Brug, with the introduction of the first regulations. Rules of conduct, fixed trading hours, and an exchange clerk were introduced. At regular intervals, the exchange clerk sounded a bell to open the exchange. Euronext Amsterdam still sounds the gong around three times per week to open a new day of trading. Even when there is no ceremony, the sound of the Gong still echoes over the enormous trading floor.
