Futures exchange

futures marketfuturesfutures marketsderivatives exchangefutures exchangesfutures and options exchangesexchangeFutureFuture tradingFutures and options trading
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.wikipedia
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Derivative (finance)

derivativesderivativefinancial derivatives
These types of contracts fall into the category of derivatives.
There are two groups of derivative contracts: the privately traded over-the-counter (OTC) derivatives such as swaps that do not go through an exchange or other intermediary, and exchange-traded derivatives (ETD) that are traded through specialized derivatives exchanges or other exchanges.

Hedge (finance)

hedginghedgehedged
Speculators absorb some of the risk but hedging appears to drive most commodity markets. With the addition of the New York Mercantile Exchange (NYMEX) the trading and hedging of financial products using futures dwarfs the traditional commodity markets, and plays a major role in the global financial system, trading over $1.5 trillion per day in 2005.
Public futures markets were established in the 19th century to allow transparent, standardized, and efficient hedging of agricultural commodity prices; they have since expanded to include futures contracts for hedging the values of energy, precious metals, foreign currency, and interest rate fluctuations.

Spot market

spotspot conversionscash market
A counterpart to the futures market is the spot market, where trades occur immediately after a transaction agreement has been made, rather than at a predetermined time in the future.
It contrasts with a futures market, in which delivery is due at a later date.

Chicago Board of Trade

CBOTBoard of TradeBoard of Trade Building
In 1848 the Chicago Board of Trade (CBOT) was formed.
The Chicago Board of Trade (CBOT), established on April 3, 1848, is one of the world's oldest futures and options exchanges.

Futures contract

futuresfutures contractsfutures trading
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.
Contracts are negotiated at futures exchanges, which act as a marketplace between buyers and sellers.

New York Mercantile Exchange

NYMEXCOMEXCommodity Exchange
With the addition of the New York Mercantile Exchange (NYMEX) the trading and hedging of financial products using futures dwarfs the traditional commodity markets, and plays a major role in the global financial system, trading over $1.5 trillion per day in 2005.
The New York Mercantile Exchange (NYMEX) is a commodity futures exchange owned and operated by CME Group of Chicago.

Exchange (organized market)

exchangeexchangestrading venue
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.
These "commodity exchanges" later started offering future contracts on other products, such as interest rates and shares, as well as options contracts; now they are generally known as futures exchanges.

Intercontinental Exchange

IntercontinentalExchangeICEICE Futures Europe
In June 2001 Intercontinental Exchange (ICE) acquired the International Petroleum Exchange (IPE), now ICE Futures, which operated Europe’s leading open-outcry energy futures exchange. Of the big derivatives venues Chicago Mercantile Exchange, ICE and Eurex all clear trades themselves.
Intercontinental Exchange (ICE) is an American company that owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces.

Chicago

Chicago, IllinoisChicago, ILCity of Chicago
Chicago has the largest future exchange in the world, the Chicago Mercantile Exchange.
The city has major financial and futures exchanges, including the Chicago Stock Exchange, the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile Exchange (the "Merc"), which is owned, along with the Chicago Board of Trade (CBOT) by Chicago's CME Group.

Open outcry

trading floorfloor tradingopen-outcry
It counts for over $45.5 billion of nominal trade (over 1 million contracts) every single day in "electronic trading" as opposed to open outcry trading of futures, options and derivatives.
Open outcry is the name of a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor.

International Monetary Market

International Monetary Market date conventions
Following the end of the postwar international gold standard, in 1972 the CME formed a division called the International Monetary Market (IMM) to offer futures contracts in foreign currencies: British pound, Canadian dollar, German mark, Japanese yen, Mexican peso, and Swiss franc.
The International Monetary Market (IMM), a related exchange created within the old Chicago Mercantile Exchange and largely the creation of Leo Melamed, is today one of four divisions of the CME Group (CME), the largest futures exchange in the United States, for the trading of futures contracts and options on futures.

Intercontinental Exchange Futures

International Petroleum Exchangeenergy futuresIPE
In June 2001 Intercontinental Exchange (ICE) acquired the International Petroleum Exchange (IPE), now ICE Futures, which operated Europe’s leading open-outcry energy futures exchange.
The International Exchange, now ICE Futures (since 2005-04-7), based in London, was one of the world's largest energy futures and options exchanges.

Midwestern United States

MidwestMidwesternAmerican Midwest
Chicago is located at the base of the Great Lakes, close to the farmlands and cattle country of the Midwest, making it a natural center for transportation, distribution, and trading of agricultural produce.
The city is also home to major financial and futures exchanges, including the Chicago Stock Exchange, the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile Exchange (the "Merc"), which is owned, along with the Chicago Board of Trade (CBOT) by Chicago's CME Group.

Minneapolis

Minneapolis, MinnesotaMinneapolis, MNCity of Minneapolis
In 1881 a regional market was founded in Minneapolis, Minnesota, and in 1883 introduced futures for the first time.
The Minneapolis Grain Exchange, founded in 1881, is still located near the riverfront and is the only exchange for hard red spring wheat futures and options.

London International Financial Futures and Options Exchange

LIFFELondon International Financial Futures ExchangeLondon Commodity Exchange
Derivative exchanges like the CBOE and LIFFE take responsibility for providing the trading environments, settlement of the resulting trades are usually handled by clearing houses that serve as central counterparties to trades done in the respective exchanges. The Options Clearing Corporation (OCC) and LCH.Clearnet (London Clearing House) respectively are the clearing corporations for CBOE and LIFFE, although LIFFE and parent NYSE Euronext has long stated its desire to develop its own clearing service.
The London International Financial Futures and Options Exchange (LIFFE, pronounced 'life') is a futures exchange based in London.

Margin (finance)

marginmargin callmargin trading
A margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty, in this case the central counterparty clearing houses.
On United States futures exchanges, margins were formerly called performance bonds.

List of futures exchanges

List of futures exchanges in Japan
This is a list of notable futures exchanges. Those stock exchanges that also offer trading in futures contracts besides trading in securities are listed both here and the list of stock exchanges.

Market liquidity

liquidityliquidilliquid
To make sure liquidity is high, there are a limited number of standardized contracts.
In the futures markets, there is no assurance that a liquid market may exist for offsetting a commodity contract at all times.

Securities and Futures Commission

Hong Kong Securities and Futures CommissionSFCSecurities and Futures Commission (SFC)
The Securities and Futures Commission (SFC) of Hong Kong is the independent statutory body charged with regulating the securities and futures markets in Hong Kong.

New York Stock Exchange

NYSENew YorkThe New York Stock Exchange
In 2006 the New York Stock Exchange teamed up with the Amsterdam-Brussels-Lisbon-Paris Exchanges "Euronext" electronic exchange to form the first transcontinental futures and options exchange.
In April 2011, Intercontinental Exchange (ICE), an American futures exchange, and NASDAQ OMX Group had together made an unsolicited proposal to buy NYSE Euronext for approximately US$11 billion, a deal in which NASDAQ would have taken control of the stock exchanges.

Eurex Exchange

Eurex
Of the big derivatives venues Chicago Mercantile Exchange, ICE and Eurex all clear trades themselves.

LCH (clearing house)

LCH.ClearnetLondon Clearing HouseLCH
The Options Clearing Corporation (OCC) and LCH.Clearnet (London Clearing House) respectively are the clearing corporations for CBOE and LIFFE, although LIFFE and parent NYSE Euronext has long stated its desire to develop its own clearing service.

Trader (finance)

tradertraderstrading
They buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges, and the commodities exchanges.

Stock market

equity marketstock marketsstock
These last two may be traded on futures exchanges (which are distinct from stock exchanges—their history traces back to commodity futures exchanges), or traded over-the-counter.