Who owns cme group

Currently, six of the 20 CME board directors are elected by Class B shares issued to owners of Chicago Mercantile Exchange seats when the exchange converted to a corporation from a member-owned exchange. The change meant that the board itself, through its four-member nominating and governance committee, would be able to nominate up to 12 B shareholders for election.

It would not eliminate the B shareholder directors' seats. CME Group retired the NEX name and brand but continues to operate its individual markets and optimization businesses as sub-brands, including BrokerTec, a top cash trading platform for FX and fixed income, EBS, an FX trading platform, Traiana, a FX messaging and trade processing network and TriOptima, a compression and portfolio reconcilliation service.

CME Group has pursued partnerships, memorandums of understanding MOU and other deals with exchanges, index providers and others in an effort to secure a global presence. CME Group said it plans to migrate its technology infrastructure to Google Cloud beginning in with data and clearing services, and eventually moving all of its markets to the cloud.

The exchange offers interest rate swaps, swaptions, FX and commodities such as energies, agriculture, metals and commodity index swaps. On December 3, , CME Group launched trading on swap futures for two-year, five-year, year and year interest rate maturities. In February , the CME Group announced that in the first quarter of , it set a new record for total bitcoin futures contracts traded. The previous record was set on November 20, The CME Group saw a record high number of bitcoin futures contracts traded, as well as the highest number of customer accounts trading bitcoin futures in its history in May On June 17, , the CME Group's open interest for bitcoin futures grew by a record contracts in a day, reaching an all-time high of 5, contracts.

Tim McCourt, managing director and global head of equity products, said in early October that CME had no plans to launch physically-delivered bitcoin futures. The CME's futures contract was traded 1,, times in the first half of , up 7. On March 30, the exchange announced the May 3rd launch of a micro bitcoin futures contract that would settle to the value of one-tenth of a bitcoin. Both reference rates will be calculated by Crypto Facilities based on transactions and order book activity from Kraken and Bitstamp.

The CME released a notice on July 5, that it changed its reference rate and index tied to Ether. The statement said that itBit would provide pricing data. Someone close to the matter told The Block that this move indicated preparation for Ether futures.

The exchange lists monthly contracts up to six months into the future as well as the nearest two Decembers. Open interest at the end of the first day's trading session was contracts. Micro E-mini equity index futures are one-tenth the size of CME Group's existing E-mini equity index futures and traded more than , contracts combined on day one. By day three, the four index futures topped 1 million contracts traded combined.

It is rare that a new contract generates more than a few thousand contracts in its early days. This product, however, was an early hit. The CME Group's product complex spans all major asset classes, including: futures and options on interest rates , equities indexes , currencies , commodities , energy products , metals and cryptocurrencies such as weather and real estate derivatives. The exchange is supported by CME Clearing , the exchange's central futures clearing mechanism, which settles all trades and acts as the counterparty between buyers and sellers , thus virtually guaranteeing the creditworthiness of every transaction The division clears not only its traditional futures contracts but also OTC contracts in interest rates, FX and commodities.

CME Group exited the credit default swaps business in mid In its history, CME Clearing has never experienced a default and was designated as a systemically important financial market utility by the Financial Stability Oversight Council. CME offers data services in a number of ways, including real-time disseminated data through its Market Data Platform or through licensed distributors.

The exchange also offers historical data through CME DataMine, and through reports accessed via its web site. For more information, click HERE. The London-based, multi-asset trade repository accepts submission of trades across all mandated derivative asset classes, namely interest rates, FX, credit, commodities and equities. CME Group has been focused on global growth, just like every other major exchange. But to get there, the exchange leader believes it has to work with customers to streamline costs so it can expand.

In part one of our two-part interview at the FIA Boca Conference, CME CEO Phupinder Gill said that the exchange is working on new ways to address capital efficiencies through products such as cleared swaptions, but also new clearing services that will help institutions reduce collateral.

CME is also continuing to work on market disruptors such as blockchain technology, which may change the way in which clearing services are delivered. With the bulk of US financial reforms now in place, financial markets appear to be pulling out of their doldrums.

Terry Duffy, executive chairman and president of CME Group, spoke with Jim Kharouf, editor-in-chief of John Lothian News, about his outlook for the exchange and the strong prospects for growth in the futures markets.

Duffy said CME Group stands to gain from the migration of OTC trades onto exchange platforms with centralized clearing, especially in the wake of new rules and capital requirements for banks in Europe.

Tully is a year veteran of the financial sector who, prior to joining CME Group in August , led the fixed income trading group at German banking firm WestLB and, prior to that, spent over ten years as a derivatives trader with Citibank and Greenwich Capital.

Tully spoke with John Lothian News Editor-at-Large Doug Ashburn about the new interest rate swap futures contracts, which launched on December 3, Over the past 18 months, the OTC derivatives world began mandatory reporting into trade repositories. Now that we have had some time to work through the logistics, it is time for a rethink. CME Group wants to increase what the existing futures user base can trade while also addressing those 13 million other active retailers.

The proposed solution? Terrence A. Duffy , Chairman and CEO [90]. John W. Washington, D. Calgary , - 3rd St. Beijing No. Duffy , Chairman and CEO Products Interest rate, equity index, foreign currency, commodity futures and options and alternative investments e. Designated Contract Market Regulation.

We visit more than websites daily for financial news Would YOU do that? Read the John Lothian Newsletter. FREE 90 day trial. CME Group. MarketVoice Magazine. Yahoo Finance. Futures Magazine. While these commercial entities use futures for hedging, speculators often take the other side of the trade hoping to profit from changes in the price of the underlying commodity.

Speculators assume the risk that the commercials hedge. A large family of futures exchanges such as the CME Group provides a regulated, liquid, centralized forum to carry out such business. Also, the CME Group provides settlement, clearing, and reporting functions that allow for a smooth trading venue.

The CFTC is responsible for oversight of brokers and merchants, conducts risk surveillance of derivatives trades, and investigates market manipulation and other abusive trade practices. It also regulates trading in virtual assets, such as Bitcoin. The CBOT originally focused on agricultural products, such as wheat, corn, and soybeans; it later expanded to financial products such as gold, silver, U. Treasury bonds, and energy. Most commodities can be traded anywhere, but there's one you can only trade at the CME: weather.

CME is the only futures exchange to offer derivatives based on weather events, allowing traders to bet on cold temperatures, sunshine, or rainfall. The Chicago Mercantile Exchange is a key part of America's financial infrastructure. Originally a marketplace for settling agricultural futures, it is now a major trading hub for precious metals, foreign currencies, treasury bonds, cryptocurrencies, and many kinds of derivatives.

The CME is the largest futures and options exchange by daily volume. CME Group had 4, employees in CME Group. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.

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What Is the Chicago Mercantile Exchange? Creation of CME Group. CME Regulation. Chicago Mercantile Exchange vs. Chicago Board of Trade. Example of Chicago Mercantile Exchange. The Bottom Line. CME was originally called the Chicago Butter and Egg Board and was used for trading agricultural products, such as wheat and corn. In the s the CME added financial futures, followed shortly by precious metals, Treasuries, and other assets. CME Group now owns several other exchanges in different cities.

Nowadays, CME is also known for trading unusual commodities like Bitcoin futures and weather derivatives. Tip CME is one of the only regulated markets for trading in Bitcoin futures.

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