Electronic Trading and Blockchain

Trading floors in the 60s and 70s involved hundreds of people shouting bids and offers in multi-coloured jackets standing next to each other in different pits, gesticulating with their hands. The decibel levels were extremely high, so high that traders who traded every day had hearing problems later in life. In 1980, the first widely used electronic trading exchange was established. On September 1, 1969, the California Commodity Advisory Research Project (CCARP) was formed and housed at UC Berkeley. The project's first aim was to examine the feasibility of an electronic, for-profit exchange. At the time, there were only 12 exchanges worldwide, and none were for-profit — or electronic. Read first-hand from Richard Sandor, the project director and how CCARP was 20 years too early for the financial world.Contents: Introduction (Richard L Sandor) Project CCARP: Interim Report — Preliminary Design for an Electronic Market for the Pacific Commodities Exchange (Richard L Sando) Market Structure Evolution — Perspectives of a Market Practitioner (Donald R. Wilson, Jr.) Blockchain Reckoning — Lowering Barriers to a Just and Sustainable Future (Don Tapscott) Readership: Finance students, researchers, and readers interested in learning about the early years of electronic trading in the US. Keywords:Blockchain;History of Electronic Trading;Electronic Trading;CCARP;Exchanges;Commodities;Financial MarketsReview: "Richard Sandor has been a leading financial innovator, beginning with his role in the nascent development of electronic trading in the 1960s and throughout subsequent decades as a pioneer of new markets, technologies and exchanges. He is uniquely qualified to write this highly recommended book, which provides both a fascinating and relevant look back at the evolution of financial innovation, as well as an expert's view on how blockchain technology will impact finance, trading and exchanges going forward." Edward T Tilly Chairman and CEO, Cboe Global Markets "Richard Sandor is one of the leading visionaries of the trading industry. Many of his earliest insights helped transform the derivatives business and establish the norms of today. His new book showcases the technology revolution that has taken us from pit trading to new financial technologies like blockchain. Written from his compelling, eye-witness perspective, Richard vividly captures the innovative spirit that continues to propel this dynamic industry forward." Terrence A Duffy Chairman and CEO, CME Group "Economists standardly assume the existence of financial markets. But this assumption misses the deeper and more difficult questions of when, why, and how markets exist, as well as how they can be made more efficient. This magnificent collection of essays by the very leaders who developed new financial markets tackles these vital questions. By looking both to the past (such as the first all-electronic exchange) and to the future (such as blockchain), the essays reveal how human creativity, relationships, and sheer hard work bring financial markets into existence. These are important, edifying, and inspiring lessons. No reader of this book will ever again be content to assume the existence of financial markets." Thomas J Miles Dean and Clifton R Musser Professor of Law and Economics University of Chicago Law School "Dr Sandor has been at the forefront developing widely-accepted risk management solutions. As a young academic in the 1960's, he was already ahead of the curve on the digitization of markets with early-generation computers. Known throughout the world for pioneering many of the most relied upon instruments and techniques for transforming price risk, he has earned global recognition and is celebrated as the "father of financial futures." Most recently, he has successfully demonstrated how a well-designed market can solve for shortages of food and water, as well as encourage investment in clean air. And he's not resting, as he continues to pioneer new market...