The Trial-and-Error Development of the Chicago Futures Markets

8 Pages Posted: 8 May 2015

See all articles by Hilary Till

Hilary Till

Premia Research LLC; EDHEC-Risk Institute; J.P. Morgan Center for Commodities, University of Colorado Denver Business School; Global Commodities Applied Research Digest

Date Written: October 2013

Abstract

Financial professionals are well aware that the ongoing implementation of the Dodd-Frank Act may cause changes to market structure, including in the futures markets. Should market participants be concerned? The short answer is not necessarily, given that the history of U.S. futures trading is one of responding to constant adversity through innovation. This paper reviews the evolution of US futures markets including: how and why modern futures trading started in Chicago; the transformation of U.S. futures exchanges from primarily agricultural futures exchanges to financial futures exchanges; how the Chicago and New York futures exchanges have had to constantly innovate in order to remain in business; and why some futures contracts fail.

Keywords: Futures markets, futures trading, hedging

JEL Classification: N22, N21, G1, G18

Suggested Citation

Till, Hilary, The Trial-and-Error Development of the Chicago Futures Markets (October 2013). Available at SSRN: https://ssrn.com/abstract=2603512 or http://dx.doi.org/10.2139/ssrn.2603512

Hilary Till (Contact Author)

Premia Research LLC ( email )

United States
312-583-1137 (Phone)
312-873-3914 (Fax)

HOME PAGE: http://customindices.spindices.com/custom-index-calculations/premia/all

EDHEC-Risk Institute

Nice
France

HOME PAGE: http://risk.edhec.edu/

J.P. Morgan Center for Commodities, University of Colorado Denver Business School ( email )

1475 Lawrence St.
Denver, CO 80202
United States

HOME PAGE: http://www.business.ucdenver.edu/commodities

Global Commodities Applied Research Digest ( email )

J.P. Morgan Center for Commodities
1475 Lawrence Street
Denver, CO 80202
United States

HOME PAGE: http://www.jpmcc-gcard.com/hilary-till

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