EDUCATORS ’ PERSPECTIVE

futures . But without pork bellies , the CME may not have survived into the 1970s to pioneer financial futures . As CME official Jack Sandner put it , “ Financial futures were spawned out of the belly of the hog .”

As financial futures gained the ascendancy , pork bellies trading began to decline . Trading in pork bellies ended in 2011 for two reasons . First , new technology allowed for the use of fresh instead of frozen pork bellies year-round . Second , demand for bacon ceased to be seasonal , as bacon ’ s popularity increased with the advent of high-protein , high-fat diets at the turn of the century . This was a radical departure from the low-fat , high-carb diets of the 1980s , and bacon transformed from a breakfast food to something served at every meal .

Bacon burgers , bacon-wrapped steaks and bacon ice cream encouraged consumers to eat bacon throughout the day . High-end restaurants began serving pork

belly in a variety of dishes . Fatty pork was popular again and in constant demand . This was not good for pork bellies futures , and trading declined dramatically .

Melamed was wise to move into financial futures at the CME . His careful planning and first-mover advantage transformed the CME into a financial powerhouse that eventually swallowed up the Chicago Board of Trade . This merger led the exchange to rename itself CME Group in 2007 . The odd little Chicago Butter and Egg Board of 1898 had reached unimaginable heights and was now a major player in global financial markets .

Brian Grinder is a professor at Eastern Washington University and a member of Financial History ’ s editorial board . Dr . Dan Cooper is the president of Active Learning Technologies .

Sources

Greising , David and Laurie Morse . Brokers , Bagmen , and Moles : Fraud and Corruption in the Chicago Futures Markets . John Wiley & Sons . 1991 .

Irwin , Scott and Doug Peterson . Back to the Futures : Crashing Dirt Bikes , Chasing Cows , and Unraveling the Mystery of Commodity Futures Markets . Ceres Books . 2023 .

Melamed , Leo . Leo Melamed : Escape to the Futures . John Wiley & Sons . 1996 .

Melamed , Leo . Man of the Futures : The Story of Leo Melamed and the Birth of Modern Finance . Harriman House . 2021 .

Newman , Kara . The Secret Financial Life of Food : From Commodities Markets to Supermarkets . Columbia University Press . 2013 .

Tamarkin , Bob . The Merc : The Emergence of a Global Financial Powerhouse . HarperBusiness . 1993 .

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