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1848 82 businessmen form the Chicago Board of Trade (CBOT) for producers, buyers and sellers of grain. 1865 CBOT develops futures contracts for grains. Hundreds of other futures markets spring up across the U.S., including the Butter and Cheese Exchange in New York (which later became the New York Mercantile Exchange) and Chicago Butter and Egg Board (later changed to Chicago Mercantile Exchange). 1887 Winnipeg Grain and Produce Exchange founded (renamed Winnipeg Commodity Exchange in 1972). Operated as a cash market only for the first 18 years before becoming a futures market. 1905 Grain Growers Grain Co. Ltd. created in Saskatchewan as a co-operative for farmers. 1917 Wheat futures trading suspended on the Winnipeg exchange, leading the federal government to create the Canadian Wheat Board two years later. 1920 Canadian Wheat Board disbanded. 1922 U.S. passes Grain Futures Act in response to widespread manipulation in the futures markets. The law cracked down on "excessive speculation" and established a framework for regulated commodity exchanges. 1923 Wheat pools created in Alberta, Saskatchewan and Manitoba to market grain for farmers. 1935 Canadian Wheat Board re-established by the federal government to market grain. 1936 U.S. enacts Commodity Exchange Act to broaden regulations to include trading in other agricultural commodities, including cotton, butter and eggs. 1943 The CWB is granted a monopoly to sell prairie farmer's wheat; wheat trading on the Winnipeg exchange suspended. 1958 Agricultural Stabilization Board created in Canada to provide price support to farmers in various commodities. 1972 Farm Products Marketing Agencies Act enacted in Canada, leads to the creation of marketing boards for dairy and poultry products.
1974 U.S. government creates the Commodity Futures Trading Commission (CFTC) to regulate commodity exchanges. 1989 CFTC issues a "swaps policy statement," saying it would not seek to regulate over-the-counter swap transactions. 1990 Transnor decision prompts CFTC to rule that Brent North Sea contracts are forward contracts and not subject to regulation. 1997 Ontario Teachers' Pension Plan becomes one of the first pension plans to invest in commodities, with a $100-million investment. 2000 Commodity Futures Modernization Act in the U.S. codifies exemptions and exclusions for various energy and financial derivatives from CFTC oversight. Intercontinental Exchange created in Atlanta as an electronic energy trading platform. 2005 CFTC expands position limits in wheat, corn and soybean trading for speculators. 2006 CFTC grants index funds exemptions from position limits imposed on speculators. 2008 In February, prices for some wheat contracts surge 85 per cent on Minneapolis Grain Exchange. Trading is so heavy the contract hits daily limits 12 times, forcing the exchange to expand them. Paul Waldie
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