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Trading forward: The Paris Bourse in the nineteenth century

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  • Paul Lagneau-Ymonet
  • Angelo Riva

Abstract

Contrary to what law and finance theory would predict, the Paris Bourse was highly liquid at the turn of the twentieth century: the traded volumes amounted to four times the French GDP. This magnitude was mainly due to forward trading. The Bourse had developed as a forward market, despite a ban on forward transactions. The guild-like body running the Bourse played a key role in legitimizing and legalizing these operations, previously equated with gambling. The 1885 legalizing act initiated a new field of law (‘securities law’) and paved the way for the heyday of the Paris Bourse.

Suggested Citation

  • Paul Lagneau-Ymonet & Angelo Riva, 2018. "Trading forward: The Paris Bourse in the nineteenth century," Business History, Taylor & Francis Journals, vol. 60(2), pages 257-280, February.
    • Handle: RePEc:taf:bushst:v:60:y:2018:i:2:p:257-280
    DOI: 10.1080/00076791.2017.1316487
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    References listed on IDEAS

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    1. Pierre-Cyrille Hautcoeur & Angelo Riva, 2007. "The Paris financial market in the 19th century: an efficient multi-polar organization?," Working Papers halshs-00587812, HAL.
    2. Pierre-Cyrille Hautcoeur & Amir Rezaee & Angelo Riva, 2010. "How to regulate a financial market? The impact of the 1893-1898 regulatory reforms on the Paris Bourse," Working Papers halshs-00547470, HAL.
    3. Peter L. Rousseau, 2003. "Historical perspectives on financial development and economic growth," Review, Federal Reserve Bank of St. Louis, vol. 85(Jul), pages 81-106.
    4. Angelo Riva & Eugene White, 2009. "Danger on Exchange: Counterparty Risk on the Paris Stock Exchange in the XIX Century," Post-Print hal-00390429, HAL.
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    Cited by:

    1. Pierre-Cyrille Hautcoeur & Amir Rezaee & Angelo Riva, 2018. "Competition among Securities Markets," Working Papers halshs-01863942, HAL.
    2. Pierre-Cyrille Hautcoeur & Amir Rezaee & Angelo Riva, 2023. "Competition between securities markets: stock exchange industry regulation in the Paris financial center at the turn of the twentieth century," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(2), pages 261-299, May.

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