
The evolution of the derivatives industry has seen old exchanges
diversify and change in response to the introduction of new
exchanges and, of course, to the changing requirements of the users
of derivatives. For instance, the Chicago Board of Trade (CBOT), the
oldest derivative exchange, has its origins heavily in commodities like
grain but today trades a diverse mix of commodities and financial
instruments. The CBOT is still an open-outcry market but has also
introduced technology so that electronic and face-to-face trading
takes place.
The CBOT has seen other exchanges such as LIFFE make the move
to electronic trading after years of successfully operating ...