Canada Forex Regulation
A trading history
The first recorded case of futures trading occurred with rice in 17th century Japan. Some evidence show a possibility that there was also trading of rice futures in China 6000 years ago.
The problem of maintaining a year-round supply seasonal crops and products such as olive oil led to a system that was developed in the Futures Market Trading today. In Japan, rice traders stored in tanks for future use. To raise money, owners of stores selling the products stored receipts. These were known as "rice tickets." Eventually, these entries will be accepted rice as a kind of general trading currency. Regulation came into force to standardize the marketing of rice tickets. With the time, modern futures trading grew out of these rules.
In the middle of the 19th century futures trading began in the grain markets of the States USA. The Chicago Board of Trade (CBOT) was established in 1848. The New York coffee, cotton and produce exchanges were born in the 1870s and 1880s. At present there are ten commodity exchanges in the United States. The largest are the Chicago Board of Trade, Chicago Mercantile Exchange's, the New York Mercantile Exchange The New York Commodity Exchange and New York Coffee, Sugar and Cocoa New York. Everyone futures trade is most important in over twenty countries, including Australia, New Zealand, Canada, England, France, Singapore and Japan. The products traded range from agricultural commodities like corn and wheat for Beans Red Rubber and marketed in Japan. Also included are products as seemingly obscure as pork bellies up to the now infamous oil futures.
The biggest increase in futures trading activity occurred in the 1970s when futures financial instruments (FOREX) started business in Chicago. The currencies like the Swiss franc and Japanese yen were the first. Also developed are marketable as future interest rate instruments such as Treasury bonds and Treasury Bills. In the 1980s, began trading stock index futures and the S & P 500. Other Derivatives followed.
The world as a extensive exchange in constant search of new products in which futures trading. Very few of these survive and grow new markets in commercial vehicles viable. Some Examples of less successful markets attempted in recent years, shrimp and Cheddar cheese.
Futures trading is regulated by the Department of Agriculture an agency called the Commodity Futures Trading Commission. Regulates futures exchanges, brokerage houses, fund managers and advisers to commodities.
Copyright © 2006 CR Ellsworth
About the Author
C. R. Ellsworth is retired and living in the ‘Great North Woods’.
He’s been involved in Marketing since 2000.
A History of Trading