Merchant guilds began to form during the Medieval period. A fraternity formed by the merchants of Tiel in Gelderland (in present-day Netherlands) in 1020 is believed to be the first example of a guild. The term, "guild" was first used for gilda mercatoria to describe a body of merchants operating out of St. Omer, France in the 11th century and London's Hanse was formed in the 12th century.  These guilds controlled the way that trade was to be conducted and codified rules governing the conditions of trade. Rules established by merchant guilds were often incorporated into the charters granted to market towns . In the early 12th century, a confederation of merchant guilds, formed out the German cities of Lubeck and Hamburg, known as "The Hanseatic League " came to dominate trade around the Baltic Sea. By the 13th and 14th centuries, merchant guilds had sufficient resources to have erected guild halls in many major market towns. 
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