New York Mercantile Exchange - Early History

Early History

6 Harrison Street at Hudson Street, the exchange's headquarters from 1885-1977

Commodity exchanges began in the middle of the 19th century, when businessmen began organizing market forums to make buying and selling of commodities easier. These marketplaces provided a place for buyers and sellers to set the quality, standards, and establish rules of business. By the late 19th century about 1,600 marketplaces had sprung up at ports and railroad stations. In 1872, a group of Manhattan dairy merchants got together and created the Butter and Cheese Exchange of New York. Soon, egg trade became part of the business conducted on the exchange and the name was modified to the Butter, Cheese, and Egg Exchange. In 1882, the name finally changed to the New York Mercantile Exchange when opening trade to dried fruits, canned goods, and poultry.

As centralized warehouses were built into principal market centers such as New York and Chicago in the early 20th century, exchanges in smaller cities began to disappear giving more business to the exchanges such as the NYMEX in bigger cities. In 1933, the COMEX was established through the merger of four smaller exchanges; the National Metal Exchange, the Rubber Exchange of New York, the National Raw Silk Exchange, and the New York Hide Exchange. In the 1970s, COMEX, NYMEX, and other exchanges shared a single trading floor in 4 World Trade Center. This floor was depicted in the 1980s film Trading Places.

Read more about this topic:  New York Mercantile Exchange

Famous quotes containing the words early and/or history:

    No two men see the world exactly alike, and different temperaments will apply in different ways a principle that they both acknowledge. The same man will, indeed, often see and judge the same things differently on different occasions: early convictions must give way to more mature ones. Nevertheless, may not the opinions that a man holds and expresses withstand all trials, if he only remains true to himself and others?
    Johann Wolfgang Von Goethe (1749–1832)

    It’s a very delicate surgical operation—to cut out the heart without killing the patient. The history of our country, however, is a very tough old patient, and we’ll do the best we can.
    Dudley Nichols, U.S. screenwriter. Jean Renoir. Sorel (Philip Merivale)