Historical information on the establishment of exchange trade

. Keywords: exchange, trading, economy, growth, practice, contract.

Ancient Greece and Ancient Rome already had experience of formalized trade with a central market institution, with common barter transactions, with a monetary system, with the practice of concluding contracts for the delivery of goods in contractual terms. In the heyday of the Roman Empire, shopping centers called fora vendalia (sales markets) were the centers for selling goods that the Romans brought from remote corners of the empire. In Japan, the prototype of exchange trade existed in the first century AD. But these were the economic institutions worked out by the peoples of other civilizations. Nevertheless, many principles of trading modern exchanges and their counterparts in other cultures are similar. Modern exchanges are directly connected with the life and work of Western European peoples, and analyzing the forms of exchange trade, one can see the features of the mental, social and economic structure of Western European culture.

Western European superethnos (an ethnic system consisting of several ethnos-peoples that emerged simultaneously in the same region, manifested in history as a mosaic entity) declared its birth in the time of Charlemagne and his empire, that is, in the beginning of IX century. And by the 11th century, the peoples of Western Europe were reaching their maturity. By the end of the 11th century and the beginning of the 12th century, the appearance of medieval fairs of England and France can be attributed. By the middle of the XII century, these fairs are already very large, diverse. With the development of specialization, some fairs became the focus of trade between English, Flemish, Spanish, French and Italian merchants. In the thirteenth century, the most common and usual transactions were cash settlements on the spot and the immediate delivery of goods; However, at that time, they began to practice the conclusion of contracts for the later delivery of goods within the agreed timeframes with quality standards established by samples1.

Etymologically, the term "stock exchange" comes from the Greek bipga (bag, wallet), German borse and Dutch bturs at the place of its first appearance in the 15th century in Bruges (the Netherlands). The fact is that in this city on the square near the house of the notable money changer and broker Van der Burse, which had a coat of arms from three purses, merchants from different countries gathered to exchange trade information, purchase foreign bills and other trading operations without presenting a particular item of purchase -Sales. But literally in a few years this exchange, which gave the name to a new type of economic relations, gave way to the Antwerp stock exchange that emerged in 1460.

In 1801, a special building for the stock exchange was built in London and the first stock exchange society was formed.

In the XV-XVI centuries. exchanges arose in places of appearance of manufactories in Italy and Holland as a manifestation of the need for the development of foreign trade in transactions with large quantities of goods. In the image of the Antwerp Stock Exchange, the Lyons (1545), the London Royal

• (1566)    and other stock exchanges were established, which were mainly commodity and bill of exchange. In 1602 the Amsterdam Stock Exchange was organized, which played in the 17th century. the main role in world trade, for the first time the subject of stock transactions were shares of newly emerged first joint-stock companies.

In the United States, commodity markets have existed since 1752; they were trading in domestic goods, home-made products, textiles, skins and skins, metals and timber.

Initially, there was a real commodity exchange, that is, a form of wholesale trade, adequate to home-manufactured and manufactory production. Its distinctive features, which are inherent in modern exchanges, were the regularity of the resumption of trading, the confinement of trade to a particular place, and subordination to pre-established rules. The most typical type of exchange transactions were transactions with cash. At this stage, exchange trading only established a link between the merchant and the producer or consumer. The establishment of exchanges was extremely slow and was limited mainly to ports leading for international trade.

The industrial revolution caused an enormous expansion in the demand for raw materials and food, led to an increase in the volume and range of trade, increased demands for uniformity in the quality of the goods and the regularity of supplies. The need to satisfy these requirements of machine production determined the transformation of the stock exchange of the original type, its adaptation to new conditions. In particular, along with the provision of a market place, the organization of exchange bargaining and the fixation of trade customs, the establishment of commodity standards, the development of standard contracts, price quoting, dispute settlement (arbitration) and information activities began to be among the main functions of the exchange. The exchanges gradually turned into centers of international trade.

Rapid growth of trade turnover, the emergence of the world market made it difficult to trade on the basis of cash consignments. Mass production requires confidence not only in the supply of raw materials, whose prices are subject to significant but also in making a profit on the capital, including already spent for the production of products, which is being implemented in the form of a commodity. Sharp price fluctuations, markedly increasing risks, limit the confidence in making a profit. As a result, the leading role in exchange transactions was acquired by transactions for a period with a real product, guaranteeing entrepreneurs the delivery of goods of the required quality at the right time at prices that provided the opportunity to profit. The next stage in the development of exchange trade was the emergence of futures (wholesale correspondence, non-cash) trade. The history of modern futures trading began in the Midwest USA in the early 1800s. It is closely related to the development of commercial activities in Chicago and the grain trade in the Midwest. Chaos in the supply and demand, transportation and storage problems forced farmers and traders to enter into contracts with the subsequent delivery of goods. Advance, preliminary contracts for the supply of corn were first concluded by merchants who received grain from farmers in late autumn and early winter, but had to store it until the corn was dry enough to be loaded onto the ship and the river would be free of ice. To reduce the risk of falling prices during winter storage, these traders went to Chicago and there signed contracts with processors to supply them with grain in the spring. Thus, they guaranteed themselves buyers and grain prices. On March 13, 1851, a contract was signed for 3,000 bushels (about 75 tons) of corn for delivery in June, the first of its kind. By the end of the 19th century, futures trading gained momentum so that it became necessary to formalize trade practices, standardize contracts, establish rules of conduct and calculations, the procedure for resolving disputes, the procedure for settling disagreements. And at the beginning of the 20th century, with the formation of new commodity exchanges, futures trading began to grow more and more.

Used sources:

• 1.    Alexey Kireev. International Economics. Part one. Moscow. International relationships. 2000

• 2.    Scientific and Practical Journal The market, money and credit, 12/2012.

• 3.    Мамажонова Г. К. МЕЖРЕЛИГИОЗНОЕ СОГЛАСИЕ КАК ОДИН ИЗ ОСНОВНЫХ ФАКТОРОВ БЕЗОПАСНОСТИ В ЦЕНТРАЛЬНОЙ АЗИИ //Теория и практика современной науки. – 2017. – №. 5. – С. 483-485.

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