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The Government of Markets

How Interwar Collaborations between the CBOT and the State Created Modern Futures Trading

  • Rasheed Saleuddin

Part of the Palgrave Studies in the History of Finance book series (PSHF)

Table of contents

About this book

Introduction

Absent evidence to the contrary, it is usually assumed that US financial markets developed in spite of government attempts to regulate, and therefore laissez faire is the best approach for developing critically important and enduring market institutions. This book makes heavy use of extensive archival sources that are no longer publicly available to describe in detail the discussions inside the CBOT and the often private and confidential negotiations between industry leaders and government officials. This work suggests that, contrary to the accepted story, what we now know of as modern futures markets were heavily co-constructed through a meaningful long-term collaboration between a progressive CBOT leadership and an extremely knowledgeable and pragmatic US federal government. The industry leaders had a difficult time evolving the modern institutions in the face of powerful reactionary internal forces. Yet in the end the CBOT, by co-opting and cooperating with federal officials, led the exchange and Chicago markets in general to a near century of global dominance. On the federal government side, knowledgeable technocrats and inspired politicians led an information and analysis explosion while interacting with industry, both formally and informally, to craft better markets for all.


Keywords

Modern Futures Trading Financial Markets History of markets History of financial markets US interwar collaboration financial market innovation Regulation theory Financial markets government policy

Authors and affiliations

  • Rasheed Saleuddin
    • 1
  1. 1.Centre for Endowment Asset ManagementUniversity of CambridgeCambridgeUK

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-93184-5
  • Copyright Information The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2018
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-93183-8
  • Online ISBN 978-3-319-93184-5
  • Buy this book on publisher's site