DEFINITION of 'Dojima Rice Exchange'
The world's first commodity futures exchange. Established in 1697 in Osaka, Japan, by samurai who wanted to control the rice markets, the Dojima Rice Exchange was originally a market where rice was bartered. The exchange was dissolved in 1939.
BREAKING DOWN 'Dojima Rice Exchange'
Commodity futures are contracts obligating the buyer to purchase a basic good such as oil, wheat or corn, at a certain date and price in the future. Commodity futures are often settled in cash and are traded on futures exchanges such as the Chicago Mercantile Exchange and the New York Mercantile Exchange. Transactions may be completed on trading floors and through electronic networks.