Futures trading started in Chicago because of its central location at the intersection of Great Lakes shipping and railroad networks.
The CBOT was founded in 1848 as a centralized grain trading hub to help reduce risk for farmers and merchants.
It launched standardized futures contracts in 1865, which introduced reliability and security for buyers and sellers in Chicago's commodities markets by:
- Establishing quality standards for grain.
- Pioneering a system of grading and inspection.
The CME Group originated in 1874 as the Chicago Produce Exchange, which originally cleared butter and eggs.
Did you know that the federal government has specifically outlawed the introduction of a futures contract for onions?