Exchange Information

Exchange Information

There are many exchanges in the world but among them some are very big and old.

1) CHICAGO MERCANTILE EXCHANGE

Chicago Mercantile Exchange inc® (CME) is the largest futures exchange in the United States and is the largest futures clearing house in the world for the trading of the future and options on futures contracts.

As a marketplace for global risk management, the exchange brings together buyers and sellers of derivatives products, which trade on the trading floors, on the GLOBEX®ELECTRONIC TRADING platform and through privately negotiated transactions. It was founded as a non profit corporation in 1898, later CME became the first publicily traded U.S. financial exchange in December 2002 when the Class A shares of its parent company, Chicago Mercantile Exchange Holdings Inc., began trading on the New York Stock Exchange under the ticker symbol CME.

2) CHICAGO BOARD OF TRADE

The Chicago Board of Trade (CBOT), established in 1848, is one of the leading futures and options on futures exchange. More than 3,600 CBOT members trade 50 different futures and options products at the exchange through open auction and electronically. In its early history, the CBOT traded only agricultural commodities such as corn, wheat, oats and soybeans.

Futures contracts at the exchange evolved over the years to include non-storable agricultural commodities and non-agricultural products like gold and silver. For more than 150 years, the primary method of trading at the CBOT was open auction, which involved traders meeting face-to -face in trading pits to buy and sell futures contracts. But to better meet the needs of a growing global economy, the CBOT successfully launched its first electronic trading system in 1994.

3) THE NEW YORK MERCANTILE EXCHANGE

The NYMEX is the world’s largest physical commodity futures exchange and the pre-eminent trading forum for energy and precious metals. Transactions executed in the exchange avoid the risk of counter party default because the exchange clearing house acts as the counter party to every trade.

The above mentioned exchanges are of foreign country.

 Main Indian commodity exchanges are:

The National Commodity and Derivative Exchange (NCDEX).

The Multi Commodity Exchange of India (MCX)

The National Multi Commodity Exchange of India (NMCE)

The National Board of Trading in Derivatives (NBOT)