At its core commodity exchanges are operating continuously wholesale markets of pure competition.In such markets, establishes specific rules that happens conclude transactions on an easily interchangeable and qualitatively similar goods.The Commodity Exchange is an independent non-governmental institutions formed for the purpose of trade operations on transactions.
as the main subject of the exchange trade goods acts, which decided to attribute almost all kinds of raw materials, industrial products, agricultural products, which can be easily standardized.As a member of a commodity exchange at the local level can be any legal entity.Each member has the right to conduct trade in the hall, there is a right to vote at the meeting, the exchange elections and have the right to take part in the work of various committees.
Commodity Exchange: History
Their appearance occurred much earlier than the stock.In Bruges in 1409 there was the first commodity exchange.A first organized exchange is considered to be established in Antwerp in 1460.In the sixteenth century it was opened many new: in Lyon, Toulouse, London, as well as in other European cities.In the US, the first commodity exchange occurred at the beginning of the last century.In those days, the appearance of more and more new areas for trade associated with the active development of the economy.With the development of science and technology, communications and a number of high-speed transport links exchanges was rapidly reduced, as well as a variety of goods presented to them.During the time of their origin were more than two hundred products, and now they are no more than a hundred.The first stock exchange was established in Russia in 1703 after the release of a special decree of Peter the Great, who learned about it and how it works in the Netherlands, where they often visited.
Commodities
At the moment, the world commodity exchanges offer to trade with more than one hundred products, which account for about twenty percent of world trade.The classification of these products is carried out so:
- cereals;
- precious and nonferrous metals;
- meat and live animals;
- energy raw materials;
- oilseeds and derived products;
- textile raw materials;
- Flavoring products;
- industrial raw materials.
Commodity exchanges can be subdivided into specialized and versatile.It is accepted to exchange specialist with a sufficiently narrow product lines, mainly it is carried out by groups of goods.MATIF Paris Bourse and the London Metal Exchange may well serve as an example of such a trade organization.By the universal accepted to international commodity exchanges, where the volume of transactions is the greatest.Hong Kong, Sydney, Tokyo and Chicago exchanges can serve as the most prominent examples.
Usually exchanges are established on a voluntary basis, an association of legal entities and individuals registered in the same country where the market.The purpose of such associations is not profit.Usually, they are joint-stock companies operating on the closed type.Very often, in accordance with the charter members of different exchange status.As the highest governing body in this case is the meeting of the founders.The board of directors or managers is the next most important structure on the stock exchange.All committees, hired staff and executive management are in their subordination.
Options Exchange: hedging;determining the value of goods on a daily basis and pricing;guarantee of performance of contractual obligations.
