Markets in Derivative Instruments

The derivatives market took a major step forward with the formation of the Chicago Board of Trade (CBT) in 1848. It developed standardized agreements as to the quality, quantity, delivery time, and location, and called futures contracts for trading of grains in 1865. The development of financial futures resulted from a changing world economy following World War II (1939–1945).
The Futures contracts provide for efficient forward pricing and risk management. The CME (also known as the

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