At its core commodity exchanges arecontinuously operating wholesale markets for pure competition. In such markets, specific rules are established, according to which the purchase and sale transactions are concluded for easily interchangeable and qualitatively homogeneous goods. Commodity exchange is an independent non-governmental institution, formed for the purpose of carrying out trade transactions to make transactions.
As the main subject of exchange tradethere is a product to which almost all types of raw materials, manufactured goods, agricultural products are generally attributed, which can be easily standardized. As a member of the commodity exchange at the local level, any legal entity can act. Each member has the right to trade in the hall, there is the right to vote at the meeting, stock exchange elections, and also have the right to participate in the work of various committees.
Commodity exchanges: history
Their appearance occurred much earlier thanstock. In Bruges in 1409 the first commodity exchange appeared. And the first organized stock exchange is considered to be created in Antwerp in 1460. In the sixteenth century, many new ones were discovered: in Lyons, Toulouse, London, as well as in other European cities. In the US, the first commodity exchanges arose at the beginning of the century before last. In those days, the emergence of new and new trading platforms was associated with the active development of the economy. With the development of scientific and technological progress, communication facilities and a more rapid transport connection, the number of exchanges began to decline rapidly, as did the variety of goods presented to them. At the time of their inception, more than two hundred products were presented, and now there are no more than a hundred of them. The first exchange in Russia was established in 1703 after the publication of a special decree by Peter the Great, who learned about it and the principles of its work in Holland, where he often visited.
At the moment, commodity exchanges of the world offertrade more than a hundred products, accounting for about twenty percent of world trade. Classification of these goods is as follows:
- Precious and non-ferrous metals;
- meat and live animals;
- energy raw materials;
- seeds of oilseeds, as well as products of their processing;
- Textile raw materials;
- flavoring goods;
- industrial raw materials.
Commodity exchanges are divided intospecialized and universal. It is customary to refer to specialized exchanges with a rather narrow commodity specialization, mainly it is carried out by groups of goods. The Paris Stock Exchange MATIF and the London Metal Exchange may well serve as an example of such a trade organization. It is customary to refer to universal international commodity exchanges, where the volume of transactions is the largest. Hong Kong, Sydney, Tokyo and Chicago exchanges can serve as the most vivid examples.
Traditionally, exchanges arevoluntary basis of association of legal entities and individuals registered in the same country as the exchange. The purpose of such associations is not profit-making. Usually they are joint-stock companies working in a closed type. Very often, according to the charter, the status of the members of the exchange varies. As the supreme managing body in this case the assembly of founders acts. The Board of Directors or Managers is the next most important structure on the stock exchange. All committees, hired personnel and the executive directorate are subordinate to them.
Exchange functions: hedging; determining the value of goods daily and setting prices; guarantee performance of contractual obligations.
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