World Grain - September 2021 - 33

TIMELINE OF COMMODITY EXCHANGES
April 3, 1848 -The Chicago
Board of Trade (CBOT) is founded
as a cash market for grain. Forward
or " to-arrive " contracts begin
trading at the CBOT almost
immediately.
1856 -The Kansas City Board
of Trade is established by local
Kansas City merchants as a means
of trading grain.
1856 - Broker-assisted buying
and selling of exchange-based securities
was possible with the telegraph,
invented in 1832.
1867 - The first " stock ticker "
was put into action in New York
City at the NYSE, transmitting upto-the-minute
stock quotes originating
at the NYSE nationwide.
1876 - Futures trading begins
at the Kansas City Board of Trade.
1877 - The CBOT begins publishing
futures prices on a regular
basis. Future CBOT documents
considered this to be the beginning
of " true " futures trading.
1881 - The Minneapolis Chamber
of Commerce establishes an
exchange, which in 1947 became
the Minneapolis Grain Exchange.
1882 - The New York Butter,
Cheese and Egg Exchange name
is changed to NYMEX.
Sept. 15, 1920 - The Federal
Trade Commission releases the
first of seven volumes of its Report
on the Grain Trade.
1920 - Nearly 88,000 telephones
were in service in the Wall
Street district.
Sept. 21, 1922 - The Grain
Futures Act, predecessor to the
Commodity Exchange Act, is enacted.
June
15, 1936 - The Commodity
Exchange Act is enacted, replacing
the Grain Futures Act.
1947 - The Minneapolis Chamber
of Commerce is renamed the
Minneapolis Grain Exchange.
1960s - Computer-based market
data services began to take
the place of traditional ticker-tape
quotation services.
World-Grain.com / World Grain / September 2021
33
1969 - Building on digital exchange-based
streaming
quote
technology, a company named
Instinet introduced the first fully
automated system for the trade of
US securities.
1971 - Fully automated overthe-counter
(OTC) trading became
a reality with the formation of the
National Association of Securities
Dealers Automated
Quotations
(NASDAQ).
1973 - Grain and soybean futures
prices reach record highs.
This is blamed in part on excessive
speculation and there are allegations
of manipulation. .
Oct. 23-24, 1974 - Congress
passes the Commodity Futures
Trading Commission Act of 1974,
and it is signed by President Gerald
Ford. The bill creates the Commodity
Futures Trading Commission
(CFTC or Commission).
1992 - Futures contracts began
trading electronically on
the CME Globex platform, beginning
the transition from pitbased
floor.
Dec. 21, 2000 - President Bill
Clinton signs into law the Commodity
Futures Modernization
Act of 2000, which, among other
things, reauthorizes the Commission
for five years, overhauls
the Commodity Exchange Act to
create a flexible structure for the
regulation of futures and options
trading, clarifies Commission jurisdiction
over certain retail foreign
currency transactions, and repeals
the 18-year-old ban on the trading
of single stock futures.
Feb. 15, 2002 - MGEX
launched cash-settled corn and
soybean contracts on the MGEX's
electronic trading platform.
May 9, 2003 - MGEX launched
financially settled hard winter
wheat futures and options on the
electronic trading platform.
2006 - NYMEX and CME begin
transitioning toward electronic
trading.
July 12, 2007 - The Chicago
Mercantile Exchange and the Chicago
Board of Trade announce the
completion of their merger forming
the world's largest futures exchange,
the CME Group.
2008 - CME Group acquires
NYMEX's holdings when NYMEX
went public and was listed on the
NYSE.
Dec. 19, 2008 - MGEX closes
its trading pits.
2012- CME completes acquisition
of KCBT.
July 2, 2015 - After the trading
floor was consolidated with the
Chicago operations in June 2013,
the KCBT ceased operation in Chicago.
2016
- Under the CME Group
umbrella, NYMEX goes completely
electronic.
2021- CME Group announced
that it will permanently close most
of its physical trading pits, including
those for grain trading.
Sources: CFTC, CME, MGEX, FXCM
http://www.World-Grain.com
World Grain - September 2021

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