CME Group - Wikipedia

CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets ... CMEGroup FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch FinancialfuturesandoptionscompanylocatedinChicago,Illinois,UnitedStates CMEGroupInc.TypePublicTradedasNasdaq: CME(ClassA)S&P500ComponentIndustryFinancialServicesFounded1848;173 yearsago (1848)(oldestexchangeChicagoBoardofTrade)HeadquartersChicago,Illinois,UnitedStatesKeypeopleTerrenceA.Duffy(Chairman&CEO)JohnW.Pietrowicz(CFO)RevenueUS$4.883 billion[1] (2020)OperatingincomeUS$2.637 billion[1] (2020)NetincomeUS$2.105 billion[1] (2020)TotalassetsUS$125.659 billion[1] (2020)TotalequityUS$26.319 billion[1] (2020)Numberofemployees4500[2] (2020)SubsidiariesChicagoMercantileExchangeChicagoBoardofTradeNewYorkMercantileExchangeCommoditiesExchange,Inc.NEXGroupKansasCityBoardofTradeS&PDowJonesIndices(27.0%ownership)Websitewww.cmegroup.comFootnotes /references[3] CMEGroupInc.(ChicagoMercantileExchange,ChicagoBoardofTrade,NewYorkMercantileExchange,TheCommodityExchange)isanAmericanglobalmarketscompany.[4]Itistheworld'slargestfinancialderivativesexchange,[5]andtradesinassetclassesthatincludeagriculturalproducts,currencies,energy,interestrates,metals,stockindexesandcryptocurrenciesfutures.ThecompanyoffersfuturescontractsandoptionsonfuturesusingitsCMEGlobextradingplatforms,[6][7]fixedincometradingviaBrokerTecandforeignexchangetradingontheEBSplatform.Inaddition,itoperatesacentralcounterpartyclearingprovider,CMEClearing.Witharangeofpre-andpost-tradeproductsandservicesunderpinningtheentirelifecycleofatrade,CMEGroupalsooffersoptimizationandreconciliationservicesthroughTriOptima,andtradeprocessingservicesthroughTraiana. ThecompanyhasbeendescribedbyTheEconomistas,"Thebiggestfinancialexchangeyouhaveneverheardof".[8]In2019,CMEGroupwasnamedtheworld'sfastestgrowingandmostvaluableexchangebrandforthesixthconsecutiveyearbyBrandFinance,whileithadthefifthgreatestbrandstrength.[9] Contents 1Tradingplatforms 2Openoutcry 3Electronictrading 4Globalfootprint 5Awardsandhonors 6CMESpan 7Mergersandacquisitions 8Seealso 9References 10Externallinks Tradingplatforms[edit] Tradingisconductedintwomethods:anopenoutcryformatandtheCMEGlobexTradingSystemwhichisanelectronictradingplatform. Openoutcry[edit] Operatingduringregulartradinghours(RTH),theopenoutcrymethodconsistsoffloortradersstandinginatradingpittocalloutorders,prices,andquantitiesofaparticularcommodityoritsderivatives.Differentcoloredjacketsarewornbythetraderstoindicatewhatfirmtheyareapartof.Inaddition,complexhandsignals(calledArb)areused.Thesehandsignalswerefirstusedinthe1970s.Today,however,headsetsarealsousedbythebrokerstocommunicatewiththetraders.Thepitsareareasofthefloorthatareloweredtofacilitatecommunication,somewhatlikeaminiatureamphitheater.Thepitscanberaisedandlowereddependingontradingvolume.Toanonlooker,theopenoutcrysystemcanlookchaoticandconfusing,butinrealitythesystemisatriedandtruemethodofaccurateandefficienttrading.AnillustratedprojecttorecordthehandsignallanguageusedinCME'stradingpitshasbeencompiled.[10] CMEGroupannouncedonAugust10,2020thatitwillreopenitstradingpitfortheEurodollaroptions.Thecompanywillbereconfiguringthepittomeetsocialdistancestandardsoverthenextfewweeksandimplementadditionalsecuritymeasures.Whilethecoronavirusproblemremainsdynamic,thecompanywillcontinuetotrackthesituationandconveyanyadjustmentswhenappropriate.TheotheropenoutcryexchangepitsmuststaylockeduntilPhase5oftheirreopeningeffortsiscompletedbytheCityofChicagoandIllinoisState.[11] PresidentGeorgeW.BushattheCME(March6,2001) Electronictrading[edit] Operatingvirtuallyaroundtheclock,todaytheCMEGlobextradingsystemisattheheartofCMEGroup.Proposedin1987,itwasintroducedin1992asthefirstglobalelectronictradingplatformforfuturescontracts.Thisfullyelectronictradingsystemallowsmarketparticipantstotradefromboothsattheexchangeorwhilesittinginahomeorofficethousandsofmilesaway.OnOctober19,2004,theonebillionth(1,000,000,000)transactionwasrecorded.Today,CMEGlobexoperates24hoursaday,sixdaysaweek.Morethan90percentoftotalvolumeattheexchangeoccurselectronicallyonCMEGlobex. Globalfootprint[edit] In2019,CMEGroup'snon-U.S.averagedailyvolumereachedarecord4.9millioncontracts,up10%comparedwith2018,including7%growthinEurope,20%growthinAsiaand47%growthinLatinAmerica.InadditiontomaintainingofficesacrosstheAmericas,EuropeandAsia,thecompanyalsopartnerswithotherglobalexchangesincludingBursaMalaysiaBerhad,TheDubaiMercantileExchangeandSingaporeExchangeLimited.[12] Awardsandhonors[edit] CMEGrouphasreceivednumerousindustryawards.ThecompanywasnamedExchangeoftheYear,ClearingHouseoftheYearandExchangeInnovationoftheYearinthe2019RiskAwards.CMEGroupwoninfourcategoriesattheFOWInternationalAwardsincludingGlobalExchangeoftheYear,AmericasExchangeoftheYear,BestNewInterestRatesContractandProprietaryTraders'ExchangeoftheYear.In2019,CMEGroupwasnamedtotheForbeslistofAmerica'sBestMid-SizeEmployers.[13]CMEGroupwasalsonamedtoComputerworld's2019BestPlacestoworkinITlist.[14]In2019,thecompanyearnedaperfectscoreof100ontheHumanRightsCampaign'sCorporateEqualityIndex.[15] CMESpan[edit] ThecompanypioneeredtheCMESPANsoftwarethatisusedaroundtheworldastheofficialperformancebond(margin)mechanismof50registeredexchanges,clearingorganizations,servicebureaus,andregulatoryagenciesthroughouttheworld.In2019,CMEGroupannouncedthatitwouldlaunchthenextgenerationofCMESpanMarginMethodology(CMESpan2)inthefirsthalfof2020,pendingregulatoryapproval.[16] Mergersandacquisitions[edit] OnOctober17,2006,TheChicagoMercantileExchangeannouncedamergerwithitshistoricrivaltheChicagoBoardofTradefor$8billioninstock,joiningthetwofinancialinstitutionsasCMEGroupInc.ThemergeragreementwasmodifiedonDecember20,2006,[17]May11,2007,[18]June14,2007[19]andonJuly6,2007.[20]ThemergerwasapprovedbyshareholdersofbothCMEandtheChicagoBoardofTradeonJuly9,2007.[21]andclosedonJuly12,2007,afterwhichtheChicagoBoardofTradeshares(oldsymbol:BOT)stoppedtradingandwereconvertedintoCMEsharesasagreed,andtheoverarchingholdingcompanybeganlifeasCMEGroup,aCME/ChicagoBoardofTradeCompany.[22]OnJanuary13,2008electronictradingattheChicagoBoardofTradeshiftedtoCMEGlobex.[23] OnMarch17,2008,NewYorkMercantileExchange(NYMEX)(ownerofboththeNYMEXexchangeandtheCommodityExchange(COMEX))acceptedanofferfromCMEGroup,topurchaseNYMEXfor$8.9billionincashandCMEGroupStock.[24]TheacquisitionwasformallycompletedonAugust22,2008,andtheNYMEXsystemswerefullyintegratedbySeptember30,2009.[25]Alsoin2007,NYMEXinajointventurewithpartnersontheArabianPeninsulaopenedtheDubaiMercantileExchange(DME).[26] OnFebruary10,2010,CMEannounceditspurchaseof90%ofDowJonesIndexes,includingtheDowJonesIndustrialAverage.[27]CMEsubsequentlycontributedDowJonesIndexestotheformationofS&PDowJonesIndicesinexchangefora24.4%ownershipinterest.[28]InApril2013,CMEpurchasedtheremaining10%interestinDowJonesIndexesfor$80.0million.Asaresult,CME'sinterestinS&PDowJonesIndicesincreasedfrom24.4%to27.0%.[29] OnOctober17,2012,CMEGroupannounceditwouldacquiretheKansasCityBoardofTradefor$126Millionincash.KCBOTwasthedominantvenueforthesaleofhardredwinterwheat.TheChicagoBoardofTradewastheleadingtradeplatformforsoftredwinterwheat.[30][31] OnMarch29,2018,CMEGroupannouncedthatitwasbuyingLondon-basedNEXGroupfor$5.5billion.[32]TheacquisitionwascompletedonNovember2,2018.[33][34] ChicagoMercantileExchange(CME) ChicagoBoardofTrade(CBOT) NewYorkMercantileExchange(NYMEX)andCOMEX KansasCityBoardofTrade(KCBOT) S&PDowJonesIndices(27.0%ownership) Seealso[edit] ChicagoMercantileExchange IntercontinentalExchange CMEGroupTitleholders,theseason-endingtournamentoftheLPGATourofwomen'sgolf,sponsoredbyCMEGroup ChicagoBoardofTrade NewYorkMercantileExchange References[edit] ^abcde"CMEGroup2020AnnualReportResults".December31,2020.RetrievedJune7,2021. ^"CMEGroup".Fortune.RetrievedFebruary5,2019. ^"USSEC:Form10-KCMEGroupInc".U.S.SecuritiesandExchangeCommission.RetrievedFebruary15,2018. ^Stafford,Phillip(May9,2019)."CMEgainsboostwithnew'micro'futurescontracts".TheFinancialTimes.RetrievedMay13,2019. ^"HowExxon,Chevron'ssufferingstockaffectsyour401(k)".YahooFinance.FoxBusiness.RetrievedFebruary28,2020. ^"CMElookstothefuturesinEurope".Futures&OptionsWorld.June3,2014.RetrievedApril8,2016. ^"LondonstockexchangewelcomesCMEgrouptocelebrateitsglobalpartnershipwithFTSERussell".Lseg.com.RetrievedJanuary21,2019. ^"CMEGroup:Thefuturesofcapitalism".TheEconomist.May11,2013.RetrievedApril8,2016. ^"CMEisWorld'sMostValuableExchangeBrandforSixthYearRunning".BrandFinance.RetrievedFebruary24,2020. ^"CMETradingPitHandSignalsHistory".tradingpithistory.com.RetrievedAugust16,2011. ^"CMEGrouptoReopenEurodollarOptionsTradingPitonAugust10".CisionPRNewswire.June9,2020.RetrievedJune16,2020. ^"CMEGroupInc.ReportsFourth-QuarterandFull-Year2019FinancialResults".pressrelease.RetrievedFebruary24,2020. ^"America'sBestMidsizeEmployers".Forbes.RetrievedJune3,2020. ^King,Julia(June17,2019)."BestPlacestoWorkinIT2019".Computerworld.RetrievedJune3,2020. ^"58companiesinIllinoiswerenamedLGBTQfriendly".WICS.January21,2020.RetrievedJune3,2020. ^"CMEGrouptoLaunchNextGenerationofCMESPANMarginMethodology".pressrelease.RetrievedFebruary24,2020. ^"MergeragreementmodifiedDecember20,2006". ^"MergeragreementmodifiedMay11,2007". ^"MergeragreementmodifiedJune14,2007". ^"MergeragreementmodifiedJuly6,2007". ^"MergeragreementpassedJuly9,2007". ^"CMEGroupstartedoperationsJuly13,2007". ^Saphir,Ann(March3,2008)."TradingPlaces".Crain'sChicagoBusiness.CrainCommunicationsInc. ^"CMEgroup.com".Cmegroup.mediaroom.com.RetrievedSeptember22,2012. ^"CMEgroup.com".Investor.cmegroup.com.RetrievedSeptember22,2012. ^"DME:DubaiMercantileExchangeStrategicPartnership".www.cmegroup.com.RetrievedJune6,2019. ^Berman,DennisK.;Mccracken,Jeffrey(February11,2010)."CMEBuys90%ofDowJonesIndexes".TheWallStreetJournal. ^Leising,Matthew(July2,2012)."McGraw-Hill,CMEGroupStartS&PDowJonesIndicesVenture".Bloomberg.RetrievedDecember6,2013. ^"CME10-KfortheFiscalYearEndedDecember31,2014".February26,2015.RetrievedJune8,2018. ^"CMEGrouptoAcquireKansasCityBoardofTradePrint"(Pressrelease).Chicago/KansasCity,Missouri.October17,2012.RetrievedApril8,2016. ^"CMEGroupwrapsup$126MacquisitionofKansasCityBoardofTrade".www.bizjournals.com.December3,2012.RetrievedMarch5,2019. ^"CMEGroupagreestobuyMichaelSpencer'sNexfor£3.9bn".FinancialTimes.March29,2018. ^"CMEGroupacquiresNex".November2,2018. ^Sahloul,Fareed."UKcompetitionregulatorsclearCME'stakeoverofNEX".www.fnlondon.com.RetrievedMarch5,2019. Externallinks[edit] BusinessdataforCMEGroup:GoogleFinanceYahoo!FinanceSECfilings TheCMEGroupCollectionsatUniversityofIllinoisatChicago vteIllinois-basedcorporationsFortune500corporations AbbVie AbbottLaboratories Allstate Anixter ArcherDanielsMidland BaxterInternational Boeing Caterpillar CDW ConagraBrands DiscoverFinancial DoverCorporation Exelon GATX IllinoisToolWorks Ingredion JohnDeere KraftHeinz McDonald's MondelēzInternational MotorolaSolutions NavistarInternational OldRepublicInternational RRDonnelley SearsHoldings StateFarm Tenneco UnitedAirlinesHoldings WalgreensBootsAlliance W.W.Grainger Othermajorpubliccompanies(alphabetically) ACCOBrands Allscripts ArthurJ.Gallagher&Co. BrunswickCorporation Calamos CareerEducationCorporation CenturyAluminum CFIndustries CboeGlobalMarkets CMEGroup CNAFinancial DonnelleyFinancialSolutions EquityResidential FortuneBrandsHome&Security Florists'TransworldDelivery GGPInc. HyattHotelsCorp JLL KemperCorporation NalcoHoldingCompany Nicor NorthernTrust R1RCM RLICorp RubiconTechnology Stericycle TelephoneandDataSystems TitanInternational TransUnion TribunePublishing TootsieRollIndustries ULTABeauty UnivarSolutions USFoods USGCorporation Westell WintrustFinancial ZebraTechnologies Othermajorprivatecompanies(alphabetically) AceHardware BakerMcKenzie BakerTilly BlueCrossBlueShieldAssociation Claire's CountryFinancial DotFoods Eby-Brown Electro-MotiveDiesel Essendant FollettCorporation GardnerDenver GrantThornton HealthCareServiceCorporation HendricksonInternational HubInternational Jenner&Block Kirkland&Ellis LSCCommunications MarmonGroup MayerBrown MedlineIndustries Molex MortonSalt OSIGroup Pactiv ReyesHoldings Ryerson SidleyAustin Skidmore,Owings&Merrill SoloCupCompany Tellabs TransUnion TrippLite TrueValue WirtzCorporation Relatedtopics BreweriesinIllinois CompaniesintheChicagometropolitanarea FoodmanufacturersofChicago NewspapersinIllinois WineriesinIllinois vteWorldFederationofExchangesMembers AbuDhabiSecuritiesExchange AmmanStockExchange AthensStockExchange AustralianSecuritiesExchange BahrainBourse BATSGlobalMarkets BermudaStockExchange BM&FBovespa BMESpanishExchanges BolsadeComerciodeBuenosAires BolsadeComerciodeSantiago BolsadeValoresdeColombia BolsadeValoresdeLima BolsaMexicanadeValores BorsaIstanbul BoursedeCasablanca BSEIndiaLimited BulgarianStockExchange–Sofia BursaMalaysia CboeGlobalMarkets ChinaFinancialFuturesExchange CMEGroup ColomboStockExchange CyprusStockExchange DalianCommodityExchange DeutscheBörse DubaiFinancialMarket EgyptianExchange Euronext HoChiMinhCityStockExchange HongKongExchangesandClearing IndonesiaStockExchange IntercontinentalExchange InternationalSecuritiesExchange JapanExchangeGroup JSELimited KazakhstanStockExchange KoreaExchange LondonStockExchangeGroup LuxembourgStockExchange MaltaStockExchange MoscowExchange MuscatSecuritiesMarket NASDAQOMX NationalStockExchangeofIndia NigerianStockExchange NZXLimited OsloBørs PhilippineStockExchange QatarExchange SaudiStockExchange(Tadawul) ShanghaiFuturesExchange ShanghaiStockExchange ShenzhenStockExchange SingaporeExchange SIXSwissExchange StockExchangeofMauritius StockExchangeofThailand TaipeiExchange TaiwanFuturesExchange TaiwanStockExchange TelAvivStockExchange TMXGroup ZhengzhouCommodityExchange Associates DepositoryTrust&ClearingCorporation OptionsClearingCorporation Affiliates BeirutStockExchange BoursedeTunis BRVM BucharestStockExchange CaymanIslandsStockExchange ChittagongStockExchange DhakaStockExchange DubaiGold&CommoditiesExchange HanoiStockExchange IndonesiaCommodityandDerivativesExchange MultiCommodityExchange NairobiSecuritiesExchange NamibianStockExchange NepalStockExchange PalestineExchange PortMoresbyStockExchange TheInternationalStockExchange UkrainianExchange Correspondents BarbadosStockExchange BelarusianCurrencyandStockExchange BolsadeComerciodeRosario BoursaKuwait CanadianSecuritiesExchange DutchCaribbeanSecuritiesExchange GhanaStockExchange JamaicaStockExchange PFTSStockExchange SydneyStockExchange vteSelectedcompaniesoftheNASDAQFinancial-100index AmericanNationalInsurance AmerisBancorp ArchCapitalGroup AtlanticUnionBank BankOZK BannerBank BOKFinancialCorporation BrighthouseFinancial CapitolFederalSavingsBank CathayGeneralBancorp CincinnatiFinancial CMEGroup ColliersInternational CommerceBancshares CoStarGroup CreditAcceptance CyrusOne EastWestBank eHealth Equinix ErieInsurance FifthThird FirstCitizensBancShares FirstFinancialBank(Ohio) FirstHawaiianBank FirstMerchantsCorporation FirstMidwestBancorp FirstService FultonFinancialCorporation Gaming&Leisure GlacierBancorp HancockWhitney HomeBancShares HostHotels&Resorts HuntingtonBancshares IndependentBank(Michigan) InteractiveBrokers InternationalBancshares InvestorsBank LamarAdvertising LendingTree LPLFinancial MarketAxess Nasdaq,Inc. 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