1. Kelong Yan BA 543 May 18, 2011

2. Roadmap The Origin Modern Exchange Markets Markets in Developed and Developing Countries – LIFFE – CBOT & CBOE – China Supplement: Trading Floor Evolution – Modern vs. Historical

3. The Origin of Futures & Options Ancient Greece& Rome 12 th Century: The Royal Exchange opened in 1571

4. Modern Futures and Options Started at The Chicago Board of Trade ( CBOT) in 1848 Major sorts of Futures & Options

6. Major Exchanges Worldwide Over 75 Exchanges (refer to next page) LIFFE, CBOT and exchanges in China

7. International Options and Futures Markets Buenos Aires Cereal Exchange Mercado Abierto Electronico SA Rosario Board of Trade Buenos Aires Futures Market Merfox Rosario Futures Exchange Australian Derivatives Exchange Asian Capacity Exchange Sydney Futures Exchange Securities Exchange of Barbados Bahia, Sergipe, Alagoas Stock Exchange Brazilian Futures Exchange Pernambuco and Paraiba Stock Exchange Minas, Espirito Santo, Brasilia Stock Exchange The Commodities & Futures Exchange Sofia Commodity Exchange Montreal Exchange Canadian Venture Exchange Winnipeg Commodity Exchange Bolsa Electronica de Chile China Zhengzhou Commodity Exchange Guandong United Futures Exchange Shanghai Cereals and Oils Exchange Beijing Commodity Exchange Wuhan Securities Exchange Centre Hong Kong Futures Exchange Shenzhen Mercantile Exchange China-Commodity Futures Exchange, Inc of Hainan Finnish Options Exchange Helsinki Exchanges MONEP MATIF Deutsche Terminborse Athens Derivatives Exchange Chinese Gold and Silver Exchange Society Budapest Commodity Exchange Madhya Pradesh Stock Exchange The OTC Exchange of India Capital Market Supervisory Agency Indonesian Commodity Exchange Board Italian Derivatives Market Italian Financial Futures Market Tokyo Commodity Exchange Maebashi Dried Cocoa Exchange Osaka Textile Exchange Kobe Raw Silk Exchange Kobe Rubber Exchange Nagoya Textile Exchange Osaka Securities Exchange Tokyo Grain Exchange Tokyo International Financial Futures Exchange Niigata Securities Exchange Japan Securities Dealing Association Kammon Commodity Exchange Kansai Agricultural Commodities Exchange Cubu Commodity Exchange Sapporo Securities Exchange Yokohama Raw Silk Exchange Amman Financial Market The Kuala Lumpur Options & Financial Futures Exchange Malaysia Derivatives Exchange Commodity and Monetary Exchange of Malaysia Mexican Derivatives Exchange AEX-Agricultural Futures Exchange AEX-Options Exchange Financiele Termijnmarkt Amsterdam NV New Zealand Futures & Options Exchange Ltd Muscat Securities Market Manila International Futures Exchange Warsaw Commodity Exchange Oporto Derivatives Exchange Romanian Commodities Exchange Sibiu Monetary-Financial and Commodities Exchange Moscow Interbank Currency Exchange Russian Exchange St Petersburg Futures Exchange Moscow Commodity Exchange Saudi Arabian Monetary Authority Singapore Commodity Exchange Ltd Singapore International Monetary Exchange Ltd Commodity Exchange of Ljubljana South African Futures Exchange Spanish Options Exchange Citrus Fruit and Commodity Market of Valencia Spanish Financial Futures Market The Swedish Futures and Options Market Swiss Options & Financial Futures Exchange AG Swiss Exchange London International Futures & Options Exchange The Baltic Exchange London Metal Exchange The London Securities and Derivatives Exchange International Petroleum Exchange of London Ltd Tradepoint Investment Exchange

8. History of Mergers Chicago Mercantile Exchange + Chicago Board of Trade = CME Group CME Group merged with NYMEX NYSE Euronext bought LIFFE

9. CBOT &CBOE 1848: COBT created 1864:the 1st ever standardized "exchange traded" forward contracts 1973: CBOT created the CBOE(the Chicago Board Options Exchange ) 2007, CBOT merged, and formed CME GROUP

10. London International Financial Futures and Options Exchange (LIFFE) 1982: LIFFE founded 1993: LIFFE merged with LTOM(London Traded Options Market ) 1996: It merged with the London Commodity Exchange (LCX), and became Europe’s biggest futures exchange By 1998: LIFFE lost market power, why?

11. LIFFE 1998: Move to electronic trading, LIFFE CONNECT created 2002: LIFFE was acquired by Euronext, power recoverd

12. Chinese Exchanges China – 1990 Futures Market established why it was so late? – 1992 CSRC (China’s Securities Regulatory Commission) – Future Opportunities

13. Trading Floor Evolution Modern Style Electronic Platform – Speed – Cost – Stability Historic Style Traditional Open Outcry – Intangible value – Excitement &Speed – Source of Revenue and Cost VS

14. Conclusion Roles of futures & options in financial world Development Trend

15. Growth of Futures/Options

16. Conclusion Issues & Risks of exchanges around the world

19. References http://en.wikipedia.org/wiki/Chicago_Board_of_Trade http://en.wikipedia.org/wiki/London_International_Financial_Futures_and_Options_Exchange http://fpc.org.uk/articles/127 http://www.marketwatch.com/story/cme-group-nymex-in-merger-talks http://www.cmegroup.com/company/history/magazine/Summer2007/LongTimeComing.html http://www.marketswiki.com/mwiki/History_of_Futures_in_China http://freephotooftheday.com/category/currency/ http://worldpayment-solutions.com/images/images/iStock_000002620177Large(1).jpg