history of futures
- Thread starter vanilla2
- Start date
Mr. Roboto.
History of Futures Trading in the U.S.
"Futures contracts for agricultural commodities have been traded in the U.S. for more than 100 years and have been under Federal regulation since the 1920s. In the last 20 years, futures trading has expanded rapidly into many new markets, beyond the domain of traditional physical and agricultural commodities. Futures and options are now offered on many energy commodities such as crude oil, gasoline heating, oil, and natural gas, as well as on a vast array of financial instruments, including foreign currencies, U.S. and foreign government securities, and U.S. and foreign stock indices. In addition, in recent years, new futures contracts have been offered in non-traditional commodity areas such as electricity, seafood, dairy products, crop yields, and weather derivatives."
Time Line!
Fukuoka Futures Exchange !
1840s Chicago!
The History of Trading!
...Futures trading had begun!
Ancient records are replete with proof that markets, utilizing elements of modern futures exchanges, were in existence throughout man's early history and in every corner of civilization. Sumerian documents, circa 3,000 B.C., reveal a systematic use of credit based on loans of grain by volume, and loans of metal by weight. Ancient records found in China, Egypt, Austria, and India are replete with rules and regulations pertaining to active commodity markets. In the city-states of Greece, market laws were in place to prevent manipulation. During the Roman period, there were nineteen trading markets in Rome called Fora Venalia that specialized in distribution of specific commodities, many of them brought from far corners of the earth by caravans. There were a host of medieval European seasonal festivals, the actual precursors to our modern exchanges, which evolved into important year-round markets, incorporating such features as self-regulation, business conduct, guarantee of contract fulfillment and mutual trust among merchants.
Sumerian documents, circa 3,000 B.C!
Rock on. This is great stuff.
"Modern" options market on government bonds already existed under the roman empire (reported in a history book dedicated on stock market I don't remember the title) 
Just to sum up what was sent to vanilla2 in a private message on this matter. Most of which has been posted before.
"It is no simple task to pinpoint with any degree of exactitude the precise moment when the idea of futures and options was born."
"Indeed, the idea of establishing forward availability of product as well as its future price was conceived at the dawn of mankind, perhaps at that inspirational moment just after Eve bit into the proverbial apple and then frantically sought to make a futures contract with Adam."
"Clearly, the first recorded application of futures is Biblical, when Joseph outlined to the Pharaoh his plan for forward buy hedges in grain to protect the land of Egypt from the coming seven years of famine."
"Ancient records are replete with proof that markets, utilizing elements of modern futures exchanges, were in existence throughout man's early history and in every corner of civilization. Sumerian documents, circa 3,000 B.C., reveal a systematic use of credit based on loans of grain by volume, and loans of metal by weight. Ancient records found in China, Egypt, Austria, and India are replete with rules and regulations pertaining to active commodity markets. In the city-states of Greece, market laws were in place to prevent manipulation. During the Roman period, there were nineteen trading markets in Rome called Fora Venalia that specialized in distribution of specific commodities, many of them brought from far corners of the earth by caravans. There were a host of medieval European seasonal festivals, the actual precursors to our modern exchanges, which evolved into important year-round markets, incorporating such features as self-regulation, business conduct, guarantee of contract fulfillment and mutual trust among merchants."
"In the sixteenth century, in two opposite parts of the world, two similar techniques were created to deal with inherent risks of production and delivery: In London, the great commercial insurance syndicate of Edward Lloyd was born; In Osaka, Japan, the first rice futures exchange was founded. Later, as a result of increased international trade spurred by the industrial revolution, a system of to arrive forward purchasing became commonplace throughout the then commercial world."
"Excerpted from a speech, by Leo Melamed."
"It is no simple task to pinpoint with any degree of exactitude the precise moment when the idea of futures and options was born."
"Indeed, the idea of establishing forward availability of product as well as its future price was conceived at the dawn of mankind, perhaps at that inspirational moment just after Eve bit into the proverbial apple and then frantically sought to make a futures contract with Adam."
"Ancient records are replete with proof that markets, utilizing elements of modern futures exchanges, were in existence throughout man's early history and in every corner of civilization. Sumerian documents, circa 3,000 B.C., reveal a systematic use of credit based on loans of grain by volume, and loans of metal by weight. Ancient records found in China, Egypt, Austria, and India are replete with rules and regulations pertaining to active commodity markets. In the city-states of Greece, market laws were in place to prevent manipulation. During the Roman period, there were nineteen trading markets in Rome called Fora Venalia that specialized in distribution of specific commodities, many of them brought from far corners of the earth by caravans. There were a host of medieval European seasonal festivals, the actual precursors to our modern exchanges, which evolved into important year-round markets, incorporating such features as self-regulation, business conduct, guarantee of contract fulfillment and mutual trust among merchants."
"In the sixteenth century, in two opposite parts of the world, two similar techniques were created to deal with inherent risks of production and delivery: In London, the great commercial insurance syndicate of Edward Lloyd was born; In Osaka, Japan, the first rice futures exchange was founded. Later, as a result of increased international trade spurred by the industrial revolution, a system of to arrive forward purchasing became commonplace throughout the then commercial world."
"Excerpted from a speech, by Leo Melamed."
The best education a web browser can buy.