This Appendix describes the operating system of commodity exchanges that existed in 1969. The system is triggered by (1) a decision to buy or sell by a speculator or hedger or (2) customer intention to deliver. The schematic representation indicates that orders from speculators and hedgers are sent to members of the exchange. These orders are then transmitted to the trading floor to be matched in an area called the ring or pit, a name evocative of the unique architecture of trading floors at the Chicago Board of Trade.1 The diagram also contains a unit labeled “Locals,” an alternative term for floor traders. After a trade is consummated by either a broker or a principal (speculator or hedger) trading for their own account, it is recorded on an order or trading card. Trading cards and orders are put on the computers of the clearing members, who provide the information to the clearinghouse.
Bache & Co.
Bank of America
Brentwood Mortgage Corp.
Citizens Savings & Loan Association
Engel Mortgage Company
The First Boston Corporation
First Federal Savings and Loan Association of Miami
Great Western Savings & Loan Association
Hornblower & Weeks-Hemphill, Noyes
Huntoon, Paige & Co., Inc.
Kaufman and Broad, Inc.
R.H. Lapin & Co.
Mortgage Guaranty Insurance Corporation ...