The first commodity exchanges in the world

Commodity exchanges

The first exchange, in the modern sense, was the exchange in Antwerp, founded in 1531. The exchange in Antwerp had its own building for transactions with colonial goods.

Commodity exchanges in the 16th and 17th centuries

In 1554 a stock exchange called the Royal Exchange was founded in London with 1773 was profiled only for the exchange of financial effects.

In 1639, several Parisian agencies appeared in Paris in the field of securities trading; then to Lyon, Toulouse and Rouen and towards the end of the 17th century in Montpellier.

In Germany, the first exchanges in Augsburg, Nuremberg and Hamburg appear in the middle of the sixteenth century. Qnd at the beginning of the 17th century on the Berlin Stock Exchange.

At the beginning of the seventeenth century in Amsterdam, goods could be traded on the basis of “option” contracts. Which made it possible to agree on a price. As a result of which the buyer received the right from the seller to purchase a certain amount of goods at a certain date in the future. A century later, in this great shopping center there is a wheat exchange. In which transactions were three times a week, in a huge wooden hall. Each merchant had a man to bring samples of wheat on which he wanted to sell it and negotiate the price according to its quality.

Scholarships were also in Basel (1699), Paris (1724), Vienna (1761), New York (1792), Brussels (1801), Rome (1827), Madrid (1831), Milan (1833), Geneva (1850) ) ), Tokyo (1855), etc.

Development of exchanges in the 18th and 19th centuries

In the eighteenth century and in the first half of the nineteenth century in the Netherlands and England spot trading has become especially important for raw materials, agricultural products and industrial products.

In 1848, the Chicago Board of Trade began its activities as a grain exchange. Some of the most experienced grain merchants decided to meet on the grain exchange – CBOT. With the advent of an organized stock exchange that offered a centralized venue, wealthy investors saw the opportunity to build huge storages. Where they could store their grain for consumption for a whole year. This helped solve grain supply problems that existed in America in the past. And helped set grain prices throughout the year. During this time, “spot” trading turned into “timely”, a process that first appeared in a form similar to what exists today at the Chicago Board of Trade in 1865. Chicago became the cereal capital of the world at that time. This type of trade then spread to Liverpool, London, New York, New Orleans, Berlin.

Chicago Stock Exchange

In 1874, merchants created the Chicago Stock Exchange, which originally sold oil, eggs, cheese, poultry, and other agricultural products. It was the Chicago Board with Eggs and Butter. In the end, he began to trade so many different types of goods that in 1919 he was closer to reality, the Chicago Board of Trade. Some of the goods sold at that time were potatoes, onions and peels. And from the 1950s turkeys, frozen eggs and pork bacon were added to goods sold at CME. Today we work with four product groups: agricultural products, currencies, interest rates and stock indices.

Forward transactions

In 1880, only wheat, corn, oats and cotton were the subject of forward transactions. Over time, the range of traded derivatives products expanded due to industrial raw materials (copper, lead, zinc), carcasses of pigs, cattle, wood, citrus juices. The development of futures markets, a significant increase in the number of transactions determined since 1971. Allowed us to diversify the range of goods traded in precious metals (gold, silver, platinum), currencies, financial securities with fixed income and stock indices.

Futures

In 1972, the CME opened trading in currency futures contract. The first financial futures contracts, and in 1975 CBOT launched the first futures contracts on the interest rate. In 1982, the Kansas City Trade Council initiated the first futures contracts on exchanges.

Although the CBOT already concluded grain futures contracts in 1865, and CME oil and butter futures contracts back in 1919. The first law governing the “contract markets” was only on September 21. 1922 – the “Law of Transactions “Cereal futures” (Grain Futures Act of 1922). The law controls grain futures transactions, but does not carefully consider issues such as regulating the trading mechanism and preventing market manipulation. The stock market crash of 1929 and the economic crisis of the early 1930s accelerated the adoption of the 1936 Commodity Exchange Act in 1936.

The story was repeated in terms of regulating futures in financial markets. Although they have been known since 1970. And were launched in 1972, the law that governed them was passed on October 23, 1974.

A significant increase in interest in futures transactions was between 1975 and 1985. As evidenced by the volume of contracts in the US and England markets.

Currently, the number of scholarships operating in the world exceeds 100. Of which 18 are in the USA, 11 in England, 8 in Germany, 7 in France. Today, 37 futures and exchanges operate in 37 countries.

With changes in the countries of Central and Eastern Europe, efforts have been made to organize stock markets in the countries of this region.

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