Chicago Mercantile Exchange
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| Chicago Mercantile Exchange | |
| Founded | 1898 as Chicago Butter and Egg Board |
|---|---|
| Headquarters | Chicago |
| Key People | see CME Group |
| Products | Futures and options on interest rates, foreign currencies, stock indexes, commodities, and alternative investment products (e.g., real estate, weather) |
| Web site | www.cmegoup.com/ |
The former Chicago Mercantile Exchange (CME) (NYSE and Nasdaq: CME), often referred to by Chicago traders as "the Merc", is a global futures and options exchange that in July 2007 acquired the Chicago Board of Trade to become CME Group.[1] CME's futures and options offerings, which are about 75 percent electronically traded on the CME Globex electronic trading platform, include interest rates, equities, currencies, commodities, and alternative investment instruments including weather and real estate derivatives.
On June 2, 2008, it was announced that the Chicago Board Options Exchange (CBOE) and CME had, for $1 billion, settled a court case regarding who owns the (CBOE), ending an almost two-year lawsuit that had prevented the CBOE from merging with another exchange or going public. The settlement provided full CBOT members with an 18 percent stake in the CBOE and $300 million in cash, terms worth roughly $1 billion with a $4 billion valuation of the options market. To qualify for the settlement, CBOT members had to have valid trading rights at the CBOE and own 10,251 shares of the CME Group, which was formed in 2007 when the CME bought the CBOT. Rejected settlements ranged between $850 million and $1.3 billion.[2][3]
Contents |
History
CME was founded in 1898 as the Chicago Butter and Egg Board as a not-for-profit company.[1] In 1919, its name was changed to the Chicago Mercantile Exchange. From its not-for-profit membership organization roots, the CME on Nov. 13, 2000, became the first U.S. financial exchange to demutualize into a shareholder-owned corporation. In December 2002, CME became a publicly traded company.[2]
In October 2006 the exchange announced that CME and cross-town rival, the Chicago Board of Trade, intended to pursue a merger, which in July 2007 was consummated. The merged corporation is CME Group.[3] In March of 2008, the CME Group purchased the New York Mercantile Exchange for $8.9 Billion dollars. [4]
The CME claims in various marketing materials to have "invented"[5][6] financial futures, however, the International Commerce Exchange, founded in 1970 by members of the New York Produce Exchange (with which it soon merged), and located in New York, was the first exchange to trade currency futures, beginning on Apr. 23, 1970, two years before the Chicago Mercantile Exchange.[7][8]
(See CME Group for additional historical highlights.)
Locations
Through the years, the CME has moved several times to accomodate the growth of the exchange.[9]
- 20 S. Wacker: 1983 to Present
- 444 West Jackson: 1972 to 1983
- 110 North Franklin: 1928 to 1972
- Lake and Wells: 1912 to 1928
- South Water Street: 1898 to 1912
CME Annual Report
- 2007 CME Annual Report
- 2006 CME Annual Report
- 2005 CME Annual Report
- 2004 CME Annual Report
- 2003 CME Annual Report
- 2002 CME Annual Report
See Also
Product pages:
- CME Group 10-Year Interest Rate Swaps
- CME Group 10-Year US Treasury Note
- CME Group 2-Year US Treasury Note
- CME Group 30-Year Interest Rate Swaps
- CME Group 5-Year Interest Rate Swaps
- CME Group 5-Year US Treasury Note
- CME Group Seasonal Strip Weather Heating Degree Day
References
- ↑ Cme Group Inc. CNN. Retrieved on December 26, 2008.
- ↑ Prospectus. U.S. Securities Exchange Commission. Retrieved on December 26, 2008.
- ↑ FORM 425. U.S. Securities Exchange Commission. Retrieved on December 26, 2008.
- ↑ CME Group Agrees to Purchase NYMEX for $8.9 billion. {{{org}}}. Retrieved on October 17, 2009.
- ↑ We Invented Financial Futures. CME Group. Retrieved on April 11, 2008.
- ↑ Negotiating a Market, Performing Theory: The Historical Sociology of a Financial Derivatives Exchange. Paper by Donald MacKenzie and Yuval Millo presented at European Association for Evolutionary Political Economy conference, Siena, November 8-11, 2001. Retrieved on April 11, 2008.
- ↑ Trading Organizations. U.S. Commodity Futures Trading Commission. Retrieved on April 11, 2008.
- ↑ Who is Murray Borowitz?. John Lothian Newsletter. Retrieved on April 11, 2008.
- ↑ Merc Memory Lane. Chicago Suntimes. Retrieved on May 16, 2008.
