Michael UguliniThe Chicago Board of Trade
February 12th 2009 01:44
Major enterprises typically have very humble beginnings and this is no less so when you look at the history of the Chicago Board of Trade (CBOT). They began on April 13, 1848, in a flour store at South Water Street in Chicago, Illinois. On that date, 83 merchants got together to form the CBOT as a central marketplace for exchanging commodities.
In 1851, the first "forward" contract was recorded. This was for 3,000 bushels of corn. A forward contract is different from a spot delivery – that which hands over "on the spot" to the buyer.
In 1865, the CBOT put in place measures for formalizing grain trading. They developed "futures contracts", which are standardized agreements for the buying and selling of commodities. These standardized agreements are for buying and selling fixed amounts of a particular commodity – at a specified location – at a "future time". They are also for a "predetermined price."
On July 9, 2007, the Chicago Mercantile Exchange Holdings, Inc. (CME) and the Chicago Board of Trade Holdings, Inc. (CBOT) completed their merger. Today, the CME, the CBOT, and the New York Mercantile Exchange (NYMEX) are all merged and comprise the CME Group (a CME/Chicago Board of Trade/NYMEX Company).
The CME Group offers futures and options and more than 75 percent of their trading volume occurs from trades made on their CME Globex electronic trading platform. The CME Group offers futures and options based on agricultural commodities, interest rates, equity indexes, foreign exchange, energy, metals, and alternative investment products.
With commodities, there are specific delivery dates at specific locations. This is the "when and where" for buyers and sellers. Buyers pick up their goods from sellers based on the agreement (contract) they entered into with each other on an exchange. There are predetermined months and locations for delivery of every commodity traded.
For example, the contract months for Wheat Futures according to the CME Group are March, May, July, September, and December. This is for physical delivery to grain elevators, which may be in Omaha, Chicago, or elsewhere depending on the agreement. The Last Delivery Date for Wheat Futures (CME Group) is the second business day following the last trading day of the Delivery Month.
CHICAGO BOARD OF TRADE
In 1851, the first "forward" contract was recorded. This was for 3,000 bushels of corn. A forward contract is different from a spot delivery – that which hands over "on the spot" to the buyer.
In 1865, the CBOT put in place measures for formalizing grain trading. They developed "futures contracts", which are standardized agreements for the buying and selling of commodities. These standardized agreements are for buying and selling fixed amounts of a particular commodity – at a specified location – at a "future time". They are also for a "predetermined price."
On July 9, 2007, the Chicago Mercantile Exchange Holdings, Inc. (CME) and the Chicago Board of Trade Holdings, Inc. (CBOT) completed their merger. Today, the CME, the CBOT, and the New York Mercantile Exchange (NYMEX) are all merged and comprise the CME Group (a CME/Chicago Board of Trade/NYMEX Company).
The CME Group offers futures and options and more than 75 percent of their trading volume occurs from trades made on their CME Globex electronic trading platform. The CME Group offers futures and options based on agricultural commodities, interest rates, equity indexes, foreign exchange, energy, metals, and alternative investment products.
With commodities, there are specific delivery dates at specific locations. This is the "when and where" for buyers and sellers. Buyers pick up their goods from sellers based on the agreement (contract) they entered into with each other on an exchange. There are predetermined months and locations for delivery of every commodity traded.
For example, the contract months for Wheat Futures according to the CME Group are March, May, July, September, and December. This is for physical delivery to grain elevators, which may be in Omaha, Chicago, or elsewhere depending on the agreement. The Last Delivery Date for Wheat Futures (CME Group) is the second business day following the last trading day of the Delivery Month.
CHICAGO BOARD OF TRADE
| 79 |
| Vote |
subscribe to this blog
