Slide 1RoadmapThe Origin of Futures & OptionsModern Futures and OptionsSlide 5Major Exchanges WorldwideSlide 7History of MergersCBOT &CBOESlide 10LIFFEChinese ExchangesTrading Floor EvolutionConclusionGrowth of Futures/OptionsConclusionSlide 17Slide 18ReferencesInternational Developments in Futures and OptionsKelong YanBA 543May 18, 2011Roadmap•The Origin•Modern Exchange Markets•Markets in Developed and Developing Countries–LIFFE–CBOT & CBOE–China•Supplement: Trading Floor Evolution–Modern vs. HistoricalThe Origin of Futures & OptionsAncient Greece& Rome12th Century: The Royal Exchange opened in 1571Modern Futures and Options Started at The Chicago Board of Trade ( CBOT) in 1848• Major sorts of Futures & OptionsMajor Exchanges Worldwide•Over 75 Exchanges (refer to next page)•LIFFE, CBOT and exchanges in ChinaInternational Options and Futures MarketsBuenos Aires Cereal Exchange Mercado Abierto Electronico SARosario Board of Trade Buenos Aires Futures Market Merfox Rosario Futures Exchange Australian Derivatives ExchangeAsian Capacity Exchange Sydney Futures Exchange Securities Exchange of Barbados Bahia, Sergipe, Alagoas Stock Exchange Brazilian Futures ExchangePernambuco and Paraiba Stock Exchange Minas, Espirito Santo, Brasilia Stock ExchangeThe Commodities & Futures Exchange Sofia Commodity ExchangeMontreal Exchange Canadian Venture Exchange Winnipeg Commodity Exchange Bolsa Electronica de Chile China Zhengzhou Commodity Exchange Guandong United Futures ExchangeShanghai Cereals and Oils Exchange Beijing Commodity ExchangeWuhan Securities Exchange Centre Hong Kong Futures Exchange Shenzhen Mercantile Exchange China-Commodity Futures Exchange, Inc of HainanFinnish Options Exchange Helsinki ExchangesMONEPMATIFDeutsche Terminborse Athens Derivatives Exchange Chinese Gold and Silver Exchange Society Budapest Commodity ExchangeMadhya Pradesh Stock Exchange The OTC Exchange of India Capital Market Supervisory Agency Indonesian Commodity Exchange Board Italian Derivatives Market Italian Financial Futures MarketTokyo Commodity Exchange Maebashi Dried Cocoa Exchange Osaka Textile Exchange Kobe Raw Silk Exchange Kobe Rubber ExchangeNagoya Textile Exchange Osaka Securities Exchange Tokyo Grain ExchangeTokyo International Financial Futures Exchange Niigata Securities ExchangeJapan Securities Dealing Association Kammon Commodity Exchange Kansai Agricultural Commodities Exchange Cubu Commodity Exchange Sapporo Securities Exchange Yokohama Raw Silk ExchangeAmman Financial Market The Kuala Lumpur Options & Financial Futures ExchangeMalaysia Derivatives Exchange Commodity and Monetary Exchange of Malaysia Mexican Derivatives ExchangeAEX-Agricultural Futures Exchange AEX-Options ExchangeFinanciele Termijnmarkt Amsterdam NV New Zealand Futures & Options Exchange LtdMuscat Securities Market Manila International Futures Exchange Warsaw Commodity Exchange Oporto Derivatives ExchangeRomanian Commodities ExchangeSibiu Monetary-Financial and Commodities ExchangeMoscow Interbank Currency Exchange Russian Exchange St Petersburg Futures ExchangeMoscow Commodity Exchange Saudi Arabian Monetary Authority Singapore Commodity Exchange Ltd Singapore International Monetary Exchange LtdCommodity Exchange of Ljubljana South African Futures Exchange Spanish Options ExchangeCitrus Fruit and Commodity Market of Valencia Spanish Financial Futures Market The Swedish Futures and Options Market Swiss Options & Financial Futures Exchange AG Swiss Exchange London International Futures & Options Exchange The Baltic Exchange London Metal Exchange The London Securities and Derivatives ExchangeInternational Petroleum Exchange of London Ltd Tradepoint Investment ExchangeHistory of Mergers•Chicago Mercantile Exchange +Chicago Board of Trade = CME Group•CME Group merged with NYMEX•NYSE Euronext bought LIFFECBOT &CBOE1848: COBT created 1864:the 1st ever standardized "exchange traded" forward contracts 1973: CBOT created the CBOE(the Chicago Board Options Exchange )2007, CBOT merged, and formed CME GROUPLondon International Financial Futures and Options Exchange (LIFFE)•1982: LIFFE founded•1993: LIFFE merged with LTOM(London Traded Options Market )•1996: It merged with the London Commodity Exchange (LCX), and became Europe’s biggest futures exchange•By 1998: LIFFE lost market power, why?LIFFE• 1998: Move to electronic trading, LIFFE CONNECT created•2002: LIFFE was acquired by Euronext, power recoverdChinese Exchanges•China–1990 Futures Market establishedwhy it was so late?–1992 CSRC (China’s Securities Regulatory Commission)–Future OpportunitiesTrading Floor Evolution•Modern StyleElectronic Platform–Speed–Cost–Stability Historic StyleTraditional Open Outcry–Intangible value–Excitement &Speed–Source of Revenueand CostVSConclusion•Roles of futures & options in financial world•Development TrendGrowth of Futures/OptionsConclusion•Issues & Risks of exchanges around the