Introduction
In the year 1843, the Chicago board of trade opened for businesses at 101 S. Water Street. As new members were included in the trade, then it later moved to the Corner of South water and LaSalle streets. Its first chamber of commerce was established at the corner of LaSalle and Washington streets in 1865.later in the year 1871, the great Chicago fire destroyed this building and led it to be closed for two weeks in a wooden building known as the wigwam. It is one of the busiest commodities exchanges ever in the world and the board has more than 3,600 members and these members trade in more than 50 different lines of products.
Chicago trading board has a trading volume of 200million contracts every year and trade, in this case, is carried out through a policy known as the open outcry system. This company’s perspective was to provide contract markets for its members and its customers and to ensure that the cultivation of those markets was up to standard. The company also has 25 directors. (Edward, 1925).
Growth through innovation in the business
Chicago Board of trading grew actually from a small trading center to a national financial center in the early 1970s and this was actually facilitated by the U.S treasury bonds since these bonds were actually the only traded commodities in the united states and this led to more expansion in the company. The invention in this case can be seen as the introduction or the creation of a new good or service in the market. It involves the introduction of goods that never existed before in the market place and invention is actually vital for the economies to grow since it’s through the introduction of these new goods into the market that there is less competition leading to the growth of the economy.
Cyrus McCormick of Virginia brought many inventions into the Chicago trade through the introduction of reaper machines to the prairie farmers. It is due to the i8ntroduction of these machines then that farmers at Chicago could expand their production since these reaper machines could work faster leading to the increase in production. Fast foods could then be produced through the use of these newly introduced machines. As these reapers were grown using these machines, then there was a large market for the sale of the reapers extending from the local to the national market. As a result of the improved production, transportation and communication were later expanded in order to cater to the growing production.
This actually led to the innovations in the Chicago business and hence its growth. Chicago business continued to expand through the construction of many buildings for business specifically the slaughtering and packing of cattle and hogs. It started with selling for local consumption and later expanded and sold these products for export. By the year 1839, Chicago started shipping wheat to the outside countries; more warehouses were constructed to cater to the large outputs. (Ritchie, 1989).
As more goods were produced, it led to more people coming to Chicago to contribute to the growth of Chicago and in this case, Ogden among others led to the formation of the Chicago board of trade in the year 1848 and this was basically to expand the growth of commerce in Chicago. The board of trade along with other Chicagoans had to seek the resolution to the rising mud problem and this led eventually to the construction of sewage and drainage system and for this case, Chicago became the first North American city to construct a sewer which was highly innovative which was designed by Ellis Sylvester Chesbrough.
Also with new innovation, refrigeration was introduced which actually increased the livestock business since now these products could be reserved for quite a long time. Electronics industries also later emerged in Chicago whereby Paul Galvin actually started a small company, which produced battery eliminators, and hence as a result, Chicago became one of the first producers of car radios. (Jackson, 1879).
Due to the expansion of Chicago production, there was the introduction of E-trading, which is a form of online trading in addition to the expansion of intelligent media converter 7500s throughout the network. By the year 1996, the Chicago Board of trading introduced an Internet market information service and an electronic trading platform called project A at that time. The introduction of the Internet service led to the later introduction of electronic trading. The company also had other health product firms and laboratories. Since most of the early medications were nauseous mixtures, Chicago Company started to produce health products and many pharmacies actually arose which actually sold these pharmaceuticals and hence led to its expansion. (Ritchie, 1989).
Conclusion
Chicago Board of Trade is one of the busiest commodities exchanges ever in the world and the board has more than 3,600 members and these members trade in more than 50 different lines of products. Chicago trading board has a trading volume of 200million contracts every year and trade, in this case, is carried out through a policy known as the open outcry system. This company’s perspective was to provide contract markets for its members and its customers and to ensure that the cultivation of those markets was up to standard.
The company also has 25 directors. Chicago Board of trading grew actually from a small trading center to a national financial center in the early 1970s and this was actually facilitated by the U.S treasury bonds since these bonds were actually the only traded commodities in the united states and this led to more expansion in the company.
Reference
Edward, J. (1925). The Wheat Pit.Chicago.The Argyle Press.
Ritchie, M. (1989). God in the Pits: Confessions of a commodities trader. New York: Macmillan: London: Collier Macmillan.
Jackson, S, (1879). History of the Boards of trade and the railway’s review. Chicago.Berg And McCann, printers.