MidAmerica Commodity Exchange

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The MidAmerica Commodity Exchange (Midam) was a Chicago-based futures exchange, offering a range of mini-size contracts. The exchange was shut down in 2004 and all of its contracts moved to the Chicago Board of Trade.[1]

History

The exchange traces its roots back to 1868, and was incorporated as the Chicago Open Board of Trade in 1880, assuming the MidAmerica name in 1972[2].

The Midam was founded in 1868 as Pudd's Exchange. In the 1880s, it registered and changed its name to something similar to the Chicago Board of Trade, i.e. the Chicago Open Board of Trade. Trading on the Pudds Exchange originated in the open air on the corner of Washington and LaSalle.[3]

Midam affiliated with the Chicago Board of Trade in 1986, but remained a separate legal entity and exchange. It merged with the Chicago Rice & Cotton Exchange in 1991.

The mini contracts were one-fifth the size of those on other exchanges, and included wheat, corn, oats, soybeans, live cattle, live hogs, silver, gold, platinum, soybean meal futures, options on gold, foreign currencies and other derivatives. Volumes reached 2.4m contracts in 2000, ranking 37th among global exchanges.

Midam, with lower membership prices than its bigger neighbors, the CBOT and CME, attracted newcomers to its trading floor, a number of whom became very successful (e.g., Richard Dennis and others) and went on to trade at other exchanges.[4]

References

  1. Trading Organizations - Designated Contract Markets (DCM). U.S. Commodity Futures Trading Commission.
  2. Commodity Trading Manual. CBOT.
  3. Chicago Board of Trade. Fonds.
  4. CBOT will shut door on MidAm. Chicago Tribune.