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CME Group Inc. (Chicago Mercantile Exchange & Chicago Board of Trade) is an American financial market company operating the world's largest options and futures exchange.[3] It owns large derivatives and futures exchanges in Chicago, and New York City, and exchange facilities in London, using online trading platforms.[4][5] It also owns the Dow Jones stock and financial indexes, and CME Clearing Services, which provides settlement and clearing of exchange trades. The exchange-traded derivative contracts include futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, rare and precious metals, weather, and real estate.[6] It has been described by The Economist as "The biggest financial exchange you have never heard of".[7]

CME Group Inc.
Public
Traded asNASDAQCME (Class A)
S&P 500 Component
IndustrySecurity & commodity exchanges
Founded1841; 178 years ago (1841) (oldest exchange Chicago Board of Trade)
HeadquartersChicago, Illinois, United States
Key people
Terrence A. Duffy
(Chairman & CEO)
John W. Pietrowicz
(CFO)
Leo Melamed
(Chairman Emeritus)
RevenueIncrease US$ 3.60 billion (2016)
Increase US$ 2.20 billion (2016)
Increase US$ 1.53 billion (2016)
Total assetsIncrease US$ 69.37 billion (2016)
Total equityDecrease US$ 20.34 billion (2016)
Number of employees
2,830[1] (2017)
SubsidiariesChicago Mercantile Exchange
Chicago Board of Trade
New York Mercantile Exchange
NEX Group
Kansas City Board of Trade
S&P Dow Jones Indices (27.0% ownership)
COMEX
Websitewww.cmegroup.com
Footnotes / references
[2]

The corporate world headquarters are in Chicago in The Loop. The corporation was formed by the 2007 merger of the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT). The next year it bought the New York Mercantile Exchange.

Contents

Mergers and acquisitionsEdit

On March 17, 2008, CME Group announced it had acquired NYMEX Holdings, Inc., the parent company of the New York Mercantile Exchange (NYMEX) and Commodity Exchange, Inc (COMEX) for $8.9 billion in cash and CME Group Stock.[8] The acquisition was formally completed on August 22, 2008, and the NYMEX systems were fully integrated by September 30, 2009.[9]

The four exchanges now operate as designated contract markets (DCM) of the CME Group.[10]

On February 10, 2010, CME announced its purchase of 90% of Dow Jones Indexes, including the Dow Jones Industrial Average.[11] CME subsequently contributed Dow Jones Indexes to the formation of S&P Dow Jones Indices in exchange for a 24.4% ownership interest.[12] In April 2013, CME purchased the remaining 10% interest in Dow Jones Indexes for $80.0 million. As a result, CME's interest in S&P Dow Jones Indices increased from 24.4% to 27.0%.[13]

On October 17, 2012, CME announced it would acquire the Kansas City Board of Trade for $126 Million in cash. KCBOT is the dominant venue for the sale of hard red winter wheat. The Chicago Board of Trade is the leading trade platform for soft red winter wheat.[14][15]

On November 1, 2017, CME announced they would begin trading in Bitcoin futures by the end of 2017, pending regulatory approval.[16][17]

On March 29, 2018, CME announced it would acquire the British NEX Group for 5.5 billion US dollars.[18] The acquisition was completed on November 2, 2018.[19][20]

Commodity futures and optionsEdit

Agricultural Commodity Contracts include: Live Cattle, Lean Hogs, Feeder Cattle, Class IV Milk, Class III Milk, Nonfat Dry Milk Powder, Dry Whey, Cheese, Butter, and Random Length Lumber.

Since December 2017 bitcoin futures are traded.[21]

See alsoEdit

ReferencesEdit

  1. ^ "CME Group". Fortune. Retrieved February 5, 2019.
  2. ^ "US SEC: Form 10-K CME Group Inc". U.S. Securities and Exchange Commission. Retrieved February 15, 2018.
  3. ^ Stafford, Phillip (May 9, 2019). "CME gains boost with new 'micro' futures contracts". The Financial Times. Retrieved May 13, 2019.
  4. ^ "CME looks to the futures in Europe". Futures & Options World. June 3, 2014. Retrieved April 8, 2016.
  5. ^ "London stock exchange welcomes CME group to celebrate its global partnership with FTSE Russell". Lseg.com. Retrieved January 21, 2019.
  6. ^ "CME Group Volume Averaged 12.2 Million Contracts per Day in 2010, up 19 Percent; Double-Digit ADV Growth for Fourth Quarter and December". MediaRoom.com (Press release). CME Group. January 4, 2011. Retrieved July 21, 2013.
  7. ^ "CME Group: The futures of capitalism". The Economist. May 11, 2013. Retrieved April 8, 2016.
  8. ^ "CMEgroup.com". Cmegroup.mediaroom.com. Retrieved September 22, 2012.
  9. ^ "CMEgroup.com". Investor.cmegroup.com. Retrieved September 22, 2012.
  10. ^ Futures & Options Trading for Risk Management. CME Group (March 27, 2013). Retrieved on 2013-07-21.
  11. ^ Berman, Dennis K.; Mccracken, Jeffrey (February 11, 2010). "CME Buys 90% of Dow Jones Indexes". The Wall Street Journal.
  12. ^ Leising, Matthew (July 2, 2012). "McGraw-Hill, CME Group Start S&P Dow Jones Indices Venture". Bloomberg. Retrieved December 6, 2013.
  13. ^ "CME 10-K for the Fiscal Year Ended December 31, 2014". February 26, 2015. Retrieved June 8, 2018.
  14. ^ "CME Group to Acquire Kansas City Board of TradePrint" (Press release). Chicago / Kansas City, Missouri. October 17, 2012. Retrieved April 8, 2016.
  15. ^ "CME Group wraps up $126M acquisition of Kansas City Board of Trade". www.bizjournals.com. December 3, 2012. Retrieved March 5, 2019.
  16. ^ "Award winning trader's Bitcoin Price Forecast aims $8000". AtoZForex. Retrieved November 2, 2017.
  17. ^ Moyer, Evelyn Cheng, Liz (January 2, 2018). "E-Trade begins CME bitcoin trading as of Tuesday evening". www.cnbc.com. Retrieved March 5, 2019.
  18. ^ "CME Group agrees to buy Michael Spencer's Nex for £3.9bn". Financial Times. March 29, 2018.
  19. ^ "CME Group acquires Nex". November 2, 2018.
  20. ^ Sahloul, Fareed. "UK competition regulators clear CME's takeover of NEX". www.fnlondon.com. Retrieved March 5, 2019.
  21. ^ "Bitcoin Futures Quotes - CME Group". www.cmegroup.com.

External linksEdit