CHAPTER 7
The “Regular-Special” Dividend: A New Way to Allocate Excess Capital
The Chicago Mercantile Exchange (CME) has a long history of innovation in the derivatives market. It can trace its origins to the founding of the Chicago Butter and Egg Board in 1898. In 1919, the Chicago Butter and Egg Board became the Chicago Mercantile Exchange, which was founded as a nonprofit owned by its members. One of its acquisitions, the Chicago Board of Trade (CBOT), created the first forward contract in 1851. In 1865, the CBOT began trading futures contracts, which were more standardized and easier to exchange than forwards, and thus provided traders with increased liquidity and strategic flexibility.
Over the next 100 years, CME and CBOT would launch ...
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