What is the Chicago Mercantile Exchange?
Often called ‘The Merc’, the Chicago Mercantile Exchange (CME) is a financial and commodities exchange in the US. Products traded include interest rates, currencies, equities, stock indices and some agricultural and environmental commodities.
Where have you heard about the Chicago Mercantile Exchange?
For more than 160 years, the CME operated using trading pits. That’s probably what you picture when you think of a traditional stock exchange with traders using hand signals to make deals. But electronic trading has now largely replaced the 'open outcry' system.
What you need to know about the Chicago Mercantile Exchange.
Founded in 1898, the CME was originally called the Chicago Butter and Egg Board because it only traded contracts in butter and eggs. It later expanded its product line to frozen pork belly and foreign currency futures.
In November 2000, it became the first US financial exchange to become a shareholder-owned corporation.
In 2007 it merged with the Chicago Board of Trade to form the CME Group, which collectively handles trades in financial products, commodities and alternative futures such as real estate.