Dojima Rice Exchange

Categories: Trading, Econ

The Dojima Rice Exchange was started in 1697 (nope, not a typo, but thanks for making sure) in Osaka, Japan, by samurai...before Japan had an official currency.

In fact, the Dojima Rice Exchange is considered the foundation of Japan's modern banking system. Yep, samurai are doing more than fighting physical battles...they're fighting economic ones.

The exchange was created in the first place to get a handle on rice markets, which were going cray. And this was a major problem, because rice was a big deal: workers paid their taxes in rice and feudal lords were paid in rice. It's no surprise then that the first futures contracts were made during this time period...in rice, of course.

Sadly, the long-reigning Dojima Rice Exchange was shut down in 1939. It lived a good life. The Dojima Rice Exchange is survived by its baby, the Osaka Dojima Commodity Exchange (ODE), which is exactly what it sounds like: a commodity exchange. In Osaka.

Live long and prosper...in tubs of rice.

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