How the principles of exchange trading and the work of modern exchanges were formed is largely due to the long history of the formation and development of the commodity market. In the most general sense, an exchange is understood as a constantly operating market for interchangeable goods, services, securities or currencies, where freedom of commodity production, competition and prices is assumed.
History of the commodity market
Already in Ancient Greece and Ancient Rome, commodity exchange operations, contracts for the supply of goods at a certain time were widespread. Then the modern market system began to emerge. Even then, some shopping centers were created, where goods from different parts of the country were sold.
In the late 11th - early 12th centuries, medieval fairs began to appear in England and France. These fairs grew over time, received various specializations. They were mainly attended by English, Spanish, Flemish, Italian and French merchants. Then the immediate delivery of goods was widespread, only the first contracts appeared with agreed delivery times and special quality standards.
The very concept of "stock exchange" appeared in the 15th century in Bruges. Here, right on the square, traders from different countries gathered and exchanged foreign bills and goods without presenting the goods themselves. A new form of economic relations arose there, but the Antwerp Stock Exchange, which emerged in 1460 and acquired international significance due to its geographical location, has the right of primacy in the exchange market.
The emergence of the first exchanges
At first, the Antwerp Stock Exchange was a square with shops, later a building appeared (1531), which eliminated many inconveniences. The stock exchange was taken as a model, on the basis of which stock exchanges were opened in London, Lyon and other major cities.
It was the Anwerp Exchange that remained the most popular for a long time: goods from all over the world were brought here. Then, forward deals, wholesale deals, and partial sell deals became popular. At the same time, money changers appeared who understood the value of coins from different countries.
When the turnover increased further, new methods of trade were required. Bonds and bills appeared, which led to the formation of not only a commodity exchange, but also a stock exchange.
During the Dutch War of Independence, Antwerp suffered and the trade was moved to Middleburg and then to Amsterdam. So in 1602 the Amsterdam commodity exchange became the world trade center.
In 1703, at the behest of Peter I, the first commodity exchange in Russia appeared in St. Petersburg.
In Japan, the first commodity exchange opened in 1730 in Tokyo. It was called the Tokyo Grain Exchange.
In 1848, the Chicago Board of Trade was established. Chicago has always been a place where farmers from all over the Midwest came to sell their goods.