New York Mercantile Exchange

[oldglassboot]

What if we had a 1980s physical trading pit that would be used for open out-cry auctions? The products that would be traded would likely have to be some kinds of public commodities like oil, metals, agriculture, etc. We'd have to come up with an actual use case for the products outside of the exchange so that there would be demand for them. With oil, as an example, we'd likely have to change the way it currently works as there's already a set price and a riskless way that oil can be redeemed for, and thus an exchange would probably not be needed for it as there's already a determined fair value for it.

We'd also have to establish a clearing firm that's responsible for guaranteeing trades and managing counterparty default risk. Thus, people that want to trade would have to apply for membership to have access such that the clearing firm can make sure the counterparties will pay their debts and just in general maintain an orderly market-place. 

Anyway, this is a very ambitious idea that would take a lot of work and would most definitely require a bigger/more complex city economy to be useful, but would be a lot of fun. 

 

[KingJewMonaclu]

this but with black people

[oldglassboot]

It would likely have to be up to the clearing firm to determine the counter-party risk of every individual trader.