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Business Definition for: chicago mercantile exchange

chicago mercantile exchange

U.S. derivatives exchange founded in 1898 as the Chicago Butter and Egg Board, evolving into Chicago Mercantile Exchange in 1919. The exchange is a major global marketplace for trading futures and options on interest rates, equities, foreign exchange, commodities, and alternative investment products nearly 24 hours a day via the CME Globex electronic trading platform and on its open outcry trading floors. CME became a for-profit, shareholder- owned corporation in November 2000, the first U.S. financial exchange to demutualize by converting its membership interests into shares of common stock that can be traded separately from exchange trading privileges. In December 2002, CME became the first publicly traded U.S. financial exchange when shares of the parent company, Chicago Mercantile Exchange Holdings, Inc. began trading on the New York Stock Exchange. CME has greatly expanded its international presence through strategic alliances with exchanges and clearing organizations. As a result of its transaction processing agreement with the Chicago Board Of Trade , CME's Clearing House now clears approximately 90% of all U.S. futures trading. CME has an agreement with reuters to bring direct foreign exchange futures trading to the interbank foreign exchange market. The CME has a mutual offset system with Singapore Exchange Derivatives Trading Ltd. (SGX). The exchange has entered into memoranda of understanding with the Shanghai Stock Exchange, the Shanghai Futures Exchange, and the China Foreign Exchange Trading System. CME is a partner in OneChicago LLC , a joint venture created to trade single-stock futures and narrow-based stock indices.

See also securities and commodities exchanges
chicago mercantile exchange
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