CME Group

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.[3][4] 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.[5] It has been described by The Economist as "The biggest financial exchange you have never heard of."[6]

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.[7] The four exchanges now operate as designated contract markets (DCM) of the CME Group.[8]

On February 10, 2010, CME announced its purchase of 90% of Dow Jones Indexes, including the Dow Jones Industrial Average.[9] CME subsequently contributed Dow Jones Indexes to the formation of S&P Dow Jones Indices in exchange for a 24.4% ownership interest.[10] 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%.[11]

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.[12]

On November 1, 2017, CME announced they will begin trading in Bitcoin futures[13] 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.[14] The acquisition was completed on November 2, 2018.[15]

NYMEX building Manhattan

New York Mercantile Exchange (NYMEX) and COMEX

DJIA historical graph to jul11 (log)

S&P Dow Jones Indices (27.0% ownership)

CME Group Inc.
Public
Traded asNASDAQCME (Class A)
S&P 500 Component
IndustrySecurity & commodity exchanges
Founded1898 as a not-for-profit corporation
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
2,830[1] (2017)
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
[2]

See also

References

  1. ^ "CME Group". Fortune. Retrieved 2019-02-05.
  2. ^ "US SEC: Form 10-K CME Group Inc". U.S. Securities and Exchange Commission. Retrieved February 15, 2018.
  3. ^ "CME looks to the futures in Europe". Futures & Options World. June 3, 2014. Retrieved April 8, 2016.
  4. ^ "London stock exchange welcomes CME group to celebrate its global partnership with FTSE Russell". Lseg.com. Retrieved January 21, 2019.
  5. ^ "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.
  6. ^ "CME Group: The futures of capitalism". The Economist. May 11, 2013. Retrieved April 8, 2016.
  7. ^ "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. August 22, 2008. Retrieved April 8, 2016.
  8. ^ Futures & Options Trading for Risk Management. CME Group (March 27, 2013). Retrieved on 2013-07-21.
  9. ^ Berman, Dennis K.; Mccracken, Jeffrey (February 11, 2010). "CME Buys 90% of Dow Jones Indexes". The Wall Street Journal.
  10. ^ Leising, Matthew (July 2, 2012). "McGraw-Hill, CME Group Start S&P Dow Jones Indices Venture". Bloomberg. Retrieved December 6, 2013.
  11. ^ "CME 10-K for the Fiscal Year Ended December 31, 2014". February 26, 2015. Retrieved June 8, 2018.
  12. ^ "CME Group to Acquire Kansas City Board of TradePrint" (Press release). Chicago / Kansas City, Missouri. October 17, 2012. Retrieved April 8, 2016.
  13. ^ "Award winning trader's Bitcoin Price Forecast aims $8000". AtoZForex. Retrieved November 2, 2017.
  14. ^ "CME Group agrees to buy Michael Spencer's Nex for £3.9bn". Financial Times. March 29, 2018.
  15. ^ "CME Group acquires Nex". November 2, 2018.

External links

CME Group Tour Championship

The CME Group Tour Championship is a women's professional golf tournament, the season-ending event of the LPGA Tour. It succeeded the LPGA Tour Championship, which was played for two seasons in 2009 and 2010. From 2011 to 2013 the tournament was called the CME Group Titleholders. The tournament has a limited field of about 70 players. The event is currently televised by Golf Channel and ABC.

In 2014 the LPGA Tour introduced a season-long points race, the Race to the CME Globe, and a $1 million bonus. The CME Group Tour Championship marked the end of this season-long "Race". Each player's season-long "Race to the CME Globe" points were "reset" before the tournament based on their position in the points list. "Championship points" were then awarded to the top 40 players in the CME Group Tour Championship which were added to their "reset points" to determine the overall winner of the "Race to the CME Globe".

The title sponsor is the CME Group, a financial securities corporation based in Chicago. LPGA Commissioner Michael Whan announced on March 7, 2011, that CME had signed a three-year contract to sponsor the tournament. CME had previous experience hosting pro-am events with LPGA players.The first tournament was played in November 2011 at Grand Cypress Golf Club in Orlando, Florida, which had hosted the 2010 LPGA Tour Championship. In 2012, the tournament moved to the Eagle Course of the TwinEagles Club, in Naples, Florida. For 2013 and 2014 it was again played in Naples but at The Gold Course of the Tiburón Golf Club.

The 2011 winner earned $500,000, a full one-third of the $1.5 million purse. The first-place money was the second highest in women's golf, exceeded only by the U.S. Women's Open. Most events on the LPGA Tour have a standard schedule for distribution of the purse, with a winner's share of 15%. The 2010 LPGA Tour Championship had the same purse of $1.5 million, with a winner's share of $225,000 but it was a 120-player event rather than the limited field of the 2011 event. The purse was raised to $2 million in 2013, with a 35% winner's share of $700,000, the highest of the year. For 2014 the purse was maintained at $2 million but, with the introduction of the "Race to the CME Globe", the winner's share was reduced to one-quarter at $500,000, second only to the U.S. Women's Open.

Chicago Board of Trade

The Chicago Board of Trade (CBOT), established on April 3, 1848, is one of the world's oldest futures and options exchanges. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and electronic trading. Volumes at the exchange in 2003 were a record breaking 454 million contracts. On July 12, 2007, the CBOT merged with the Chicago Mercantile Exchange (CME) to form the CME Group. CBOT and three other exchanges (CME, NYMEX, and COMEX) now operate as designated contract markets (DCM) of the CME Group.

Chicago Mercantile Exchange

The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is an American financial and commodity derivative exchange based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board, an agricultural commodities exchange. Originally, the exchange was a non-profit organization. The Merc demutualized in November 2000, went public in December 2002, and merged with the Chicago Board of Trade in July 2007 to become a designated contract market of the CME Group Inc., which operates both markets. The Chairman and Chief Executive Officer of CME Group is Terrence A. Duffy, Bryan Durkin is President and Leo Melamed is Chairman Emeritus. On August 18, 2008, shareholders approved a merger with the New York Mercantile Exchange (NYMEX) and COMEX. The Merc, CBOT, NYMEX and COMEX are now markets owned by the CME Group.

Today, CME is the largest options and futures contracts open interest (number of contracts outstanding) of any futures exchange in the world, including any in New York City. The Merc trades several types of financial instruments: interest rates, equities, currencies, and commodities. It also offers trading in alternative investments, such as weather and real estate derivatives. As a Designated Self-Regulatory Organization (DSRO), the CME had primary regulatory-audit authority over firms such as the bankrupt MF Global.

CME also pioneered the CME SPAN software that is used around the world as the official performance bond (margin) mechanism of 50 registered exchanges, clearing organizations, service bureaus, and regulatory agencies throughout the world.

New York Mercantile Exchange

The New York Mercantile Exchange (NYMEX) is a commodity futures exchange owned and operated by CME Group of Chicago. NYMEX is located at One North End Avenue in Brookfield Place in the Battery Park City section of Manhattan, New York City. Additional offices are located in Boston, Washington, Atlanta, San Francisco, Dubai, London, and Tokyo.

The company's two principal divisions are the New York Mercantile Exchange and Commodity Exchange, Inc (COMEX), once separately owned exchanges. NYMEX Holdings, Inc., the former parent company of the New York Mercantile Exchange and COMEX, became listed on the New York Stock Exchange on November 17, 2006, under the ticker symbol NMX. On March 17, 2008, Chicago based CME Group signed a definitive agreement to acquire NYMEX Holdings, Inc. for $11.2 billion in cash and stock and the takeover was completed in August 2008. Both NYMEX and COMEX now operate as designated contract markets (DCM) of the CME Group. The other two designated contract markets in the CME Group are the Chicago Mercantile Exchange and the Chicago Board of Trade.

The New York Mercantile Exchange handles billions of dollars' worth of energy carriers, metals, and other commodities being bought and sold on the trading floor and the overnight electronic trading computer systems for future delivery. The prices quoted for transactions on the exchange are the basis for prices that people pay for various commodities throughout the world.

The floor of the NYMEX is regulated by the Commodity Futures Trading Commission, an independent agency of the United States government. Each individual company that trades on the exchange must send its own independent brokers. Therefore, a few employees on the floor of the exchange represent a big corporation and the exchange employees only record the transactions and have nothing to do with the actual trade.

Although mostly electronic since 2006, the NYMEX maintained a small venue, or "pit", that still practiced the open outcry trading system, in which traders employed shouting and complex hand gestures on the physical trading floor. A project to preserve the hand signals used at NYMEX has been published.

NYMEX closed the pit permanently at the end of trading Friday, December 30, 2016, because of shrinking volume.

S

S (named ess , plural esses) is the 19th letter in the Modern English alphabet and the ISO basic Latin alphabet.

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