Commodity exchanges

At its core, a commodity exchange is a continuously operating wholesale markets pure competition. In such markets have very specific rules, which occurs in the conclusion of transactions of purchase and sale are easily interchangeable and qualitatively homogeneous products. Commodity exchange is an independent non-governmental body formed with the purpose of performing trading operations on transactions.

As the main traded goods acts, which considered almost all kinds of raw materials, industrial goods, agricultural products, which could 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 trade in the hall, you have the right to vote at the meeting, stock elections, and also have the right to participate in the work of various committees.

Commodity exchanges: history

Their appearance was much earlier than stock. In Bruges in 1409 appeared first commodity exchange. And the first organized stock exchange is considered to be established in Antwerp in 1460. In the sixteenth century we have created many new ones: in Lyon, Toulouse, London and other European cities. In the US, the first commodity exchanges appeared in the beginning of the last century. In those days, the emergence of new platforms for trade was associated with rapid development of the economy. With the development of scientific and technological progress, communications and higher-speed transport, the number of exchanges began to decline rapidly, as the variety of goods presented to them. During the time of their origin was presented more than two hundred products, and now there are more than hundreds. The first stock exchange in Russia was founded in 1703, after a special decree of Peter the great, who learned about it and how it works in Holland, which was often.

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Commodities

Currently, the commodity exchanges of the world offer to trade with more than a hundred products, which account for approximately twenty percent of world trade. The classification of these goods is as follows:

crops;

- precious and non-ferrous metals;

- meat and live animals;

- energy raw materials;

- oilseeds and products of their processing;

textile raw materials;

- food goods;

- industrial raw materials.

A Commodity exchange can be subdivided into specialized and universal. Specialized considered the exchange with a fairly narrow product specialization, it mainly carried out by groups of goods. The Paris stock exchange MATIF and the London metal exchange may serve as an example of such a trade organization. Universal considered international commodity exchanges, where the volume of transactions is the greatest. Hong Kong, Sydney, Tokyo and Chicago stock exchanges can serve as the most vivid examples.

Usually, the exchange is a voluntary Association of legal and natural persons registered in the same country where the exchange. The purpose of these associations is a non-profit. Usually they are joint-stock companies, operating on the closed type. Very often  in accordance with the Charter of  the members of the exchange status varies. As the highest governing body in this case is the shareholders. The Board of Directors or managers is the next most important structure on the exchange. All committees, contract staff, and Executive management are in their subordination.

Functions of the exchange: hedging; valuation of goods and daily pricing; guarantee the execution of contractual obligations.