Open main menu

CME Group Inc. (Chicago Mercantile Exchange & Chicago Board of Trade) is an American financial market company operating an options and futures exchange. It owns and operates large derivatives and futures exchanges in Chicago, New York City, and exchange facilities in London, using online trading platforms.[2][3] 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.[4] It has been described by The Economist as "The biggest financial exchange you have never heard of."[5]

CME Group Inc.
Public
Traded asNASDAQCME (Class A)
S&P 500 Component
IndustrySecurity & commodity exchanges
Founded1898; 120 years ago (1898) as a not-for-profit corporation
2000; 18 years ago (2000) became shareholder-owned
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
~2,700 (2016)
SubsidiariesKansas City Board of Trade
Chicago Mercantile Exchange
Chicago Board of Trade
New York Mercantile Exchange
S&P Dow Jones Indices (27.0% ownership)
COMEX
Websitecmegroup.com
Footnotes / references
[1]

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). On March 17, 2008, CME Group announced it had acquired NYMEX Holdings, Inc., the parent company of the New York Mercantile Exchange and Commodity Exchange, Inc (COMEX). The acquisition was formally completed on August 22, 2008.[6] The four exchanges now operate as designated contract markets (DCM) of the CME Group.[7]

On February 10, 2010, CME announced its purchase of 90% of Dow Jones Indexes, including the Dow Jones Industrial Average.[8] CME subsequently contributed Dow Jones Indexes to the formation of S&P Dow Jones Indices in exchange for a 24.4% ownership interest.[9] 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%.[10]

On October 17, 2012, CME announced it was acquiring 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.[11]

On November 1, 2017, CME announced they will begin trading in Bitcoin futures[12] by the end of 2017, pending regulatory approval. Bitcoin price surged immediately breaking above the $7000 benchmark.

On March 29, 2018, CME announced that they will buy British NEX Group for 5.5 billion US dollars.[13] The acquisition was completed on November 2, 2018.[14]

See alsoEdit

ReferencesEdit

  1. ^ "US SEC: Form 10-K CME Group Inc". U.S. Securities and Exchange Commission. Retrieved February 15, 2018.
  2. ^ "CME looks to the futures in Europe". Futures & Options World. June 3, 2014. Retrieved April 8, 2016.
  3. ^ http://www.lseg.com/markets-products-and-services/our-markets/london-stock-exchange/equities-markets/raising-equity-finance/market-open-ceremony/welcome-stories/london-stock-exchange-welcomes-cme-group-celebrate-its-global-partnership-ftse-russell
  4. ^ "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 2013-07-21.
  5. ^ "CME Group: The futures of capitalism". The Economist. May 11, 2013. Retrieved April 8, 2016.
  6. ^ "CME Group Inc. Completes Acquisition of NYMEX Holdings, Inc., Expands Its Diversified Product Offerings to Include Energy and Metals and Also Announces Preliminary Election Results" (Press release). Chicago: CME Group. 2008-08-22. Retrieved 2016-04-08.
  7. ^ Futures & Options Trading for Risk Management. CME Group (2013-03-27). Retrieved on 2013-07-21.
  8. ^ Berman, Dennis K.; Mccracken, Jeffrey (February 11, 2010). "CME Buys 90% of Dow Jones Indexes". The Wall Street Journal.
  9. ^ Leising, Matthew (July 2, 2012). "McGraw-Hill, CME Group Start S&P Dow Jones Indices Venture". Bloomberg. Retrieved 6 December 2013.
  10. ^ "CME 10-K for the Fiscal Year Ended December 31, 2014". February 26, 2015. Retrieved June 8, 2018.
  11. ^ "CME Group to Acquire Kansas City Board of TradePrint" (Press release). Chicago / Kansas City, Missouri. October 17, 2012. Retrieved April 8, 2016.
  12. ^ "Award winning trader's Bitcoin Price Forecast aims $8000". AtoZForex. Retrieved 2017-11-02.
  13. ^ "CME Group agrees to buy Michael Spencer's Nex for £3.9bn". Financial Times. 29 March 2018.
  14. ^ "CME Group acquires Nex". 2 November 2018.

External linksEdit