Chicago Board of Trade
The specialization of the Chicago Board of Trade
•agricultural products (Agriculture):
corn, wheat, oats, rice, soybeans and soybean oil, and ethanol
•interest rates (Interest Rates):
30- , 10- , 5- , 2-year state bonds of the USA, 30-day Federal funds
•the Dow Jones (Equity Index):
DJ Industrial Average, DJ US Real Estate, DJ-UBS Commodity
Forms of trading and clearing
Open auction, electronic trading, block-trading OTC
CME Clearing House
Address and contacts
141 West Jackson Boulevard, Chicago, IL 60604, USA
+1 (312) 435-3500
History of development
Chicago Board of Trade, the oldest futures exchange in the world, was founded in Chicago on April 3, 1848. Originally it was a large agricultural market, on which the centrally sold and bought the grain. Employees of the exchange inspected the quality of the issued on the sale of a product and its compliance with the declared price category.
In 1864, the management of the exchange, in fact, developed a concept of futures trading. Was created by the template of the standard contract, according to which a specified amount of grain is bought and sold with a guarantee of deliveries in the future, at a price set at the auction at the time of transaction. So far 80% of the volume of global futures trade in grain passes through the exchange CBOT, in the trade hall which at the same time work more than 3,600 traders.
on 7 April 1986 CBOT swallowed up by the stock exchange «The MidAmerica Exchange». MidAm was founded in 1868 as «Pudd's Exchange» and is registered in the 1880's under similar to the CBOT name «Chicago Open Board of Trade». Trading on the Pudd''s Exchange was held in the open air on the corner of Washington and LaSalle. Exchange MidAm produced many innovations, without which now unthinkable futures industry: in 1882-m tested the concept of clearing an independent third party; in the 1920-m appeared margin Deposit; in 1968 for the first time (excluding new York city) was organized trading of futures for silver, and later on gold.
In 2002, the Chicago Board of Trade together with OneChicago started trading futures contracts on individual stocks. In January 2003, the Board of Directors had approved the introduction of technology LIFFE CONNECT, considerably simplifying the conduct of electronic trading. on April 16, CBOT and CME signed the agreement that the CME will perform clearing and associated procedures on all products listed on the CBOT. The transition to a new electronic trading system and third-party algorithm clearing was completed on 2 January 2004.
on April 14, 2005 at the meeting of the Board of Directors it was decided to restructure the stock exchange, making it a status of a commercial joint-stock holding company and commercial member of the exchange organization. 19 of October in the framework of the public offering IPO on the NYSE was billed 3.2 million shares of the Chicago Board of Trade at a price of $54,00 for the paper. On the first day of trading the stock jumped by 49%, closing at a level of $80,50.
on October 17, 2006 CME and the Chicago Board of Trade have announced a merger and the creation of the holding company CME Group. As a result of the merger, which was completed on July 12, 2007. all of the major classes of assets became available for trading in the unified trading platform. Now on the stock exchange is actively developing trade swaps and is block - trading - are clearing transactions of a large volume of concluded out of the market.