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Rice, grain and the birth of futures

In Osaka, the Dojima Rice Exchange was officially authorised in 1730, with rice futures, membership and clearing. It is widely cited as the first organised futures exchange.

About candlesticksOne "candle" shows where price started, ended, and how far it went in a period.: you'll often read that a Japanese rice trader invented candlestick charts in the 1700s. That claim is disputed: some research dates candle charts to after 1868. We haven't verified a primary source either way, so treat the legend as unconfirmed.

In Chicago, the Board of Trade was founded in 1848 and set formal margin and delivery rules in 1865. The CMEThe big Chicago futures exchange (also lists bitcoin futures). followed in 1919. In 1992 CME launched Globex, and trading started moving from pits to screens.

Timeline for this chapter

1. 1697 / 1730 · Rice, grain and the birth of futures
   The Yodoya rice market moved to Dojima, Osaka, around 1697. In 1730 the shogunate officially authorised the Dojima Rice Exchange (a rice-bill spot market plus rice futures), which had membership and clearing. It is widely cited as the first organised futures exchange. jpx.co.jp, odex.co.jp
2. 3 Apr 1848 · Rice, grain and the birth of futures
   The Chicago Board of Trade (CBOT) was founded as a cash grain market, and "to-arrive" forwards began almost immediately. cftc.gov
3. 13 Oct 1865 · Rice, grain and the birth of futures
   CBOT set formal rules on margin and delivery, a key step towards standardised futures. cmegroup.com
4. 1919 · Rice, grain and the birth of futures
   The Chicago Butter and Egg Board was reconstituted as the Chicago Mercantile Exchange (CME). cmegroup.com
5. 1992 · Rice, grain and the birth of futures
   CME launched electronic trading on Globex, starting the move from pits to screens. cmegroup.com
6. 18th c. (myth) · Rice, grain and the birth of futures
   MYTH: the popular claim that the rice trader Homma invented candlestick charts is unsupported. A 2016 prize paper in the journal of Japan's technical analysts association (NTAA), based on the National Diet Library's digital archive, concludes that candlestick charts emerged later, in the Meiji era (after 1868). ntaa.or.jp (Japanese, PDF), datavizcatalogue.com (secondary)

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