Image by/from CME Group/Henry Delforn/Allan Schoenberg
CME Group Inc. (Chicago Mercantile Exchange & Chicago Board of Trade) is a global markets company. It owns large derivatives, options and futures exchanges in Chicago and New York City using its CME Globex trading platforms. It also owns CME Clearing which provides settlement and clearing of exchange trades. CME Group offers the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. It has been described by The Economist as “The biggest financial exchange you have never heard of”.
The corporate world headquarters are in Chicago in The Loop. The corporation was formed by the 2007 merger of the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT). The next year it bought the New York Mercantile Exchange.
In 2007, two long rival exchanges, the Chicago Mercantile Exchange and the Chicago Board of Trade combined to form CME Group. Both exchanges had been leading global futures and derivatives markets. While both had historically been owned by member-traders (known as “mutual” ownership), in the years just prior to the merge, both had become public corporations.
The next year, on March 17, 2008, New York Mercantile Exchange (NYMEX), which had also recently “demutualized”, accepted an offer from CME Group to purchase NYMEX for $8.9 billion in cash and CME Group Stock. The acquisition was formally completed on August 22, 2008, and the NYMEX systems were fully integrated by September 30, 2009. Also in 2007, NYMEX in a joint venture with partners on the Arabian Peninsula opened the Dubai Mercantile Exchange (DME).
On February 10, 2010, CME announced its purchase of 90% of Dow Jones Indexes, including the Dow Jones Industrial Average. CME subsequently contributed Dow Jones Indexes to the formation of S&P Dow Jones Indices in exchange for a 24.4% ownership interest. In April 2013, CME purchased the remaining 10% interest in Dow Jones Indexes for $80.0 million. As a result, CME’s interest in S&P Dow Jones Indices increased from 24.4% to 27.0%.
On October 17, 2012, CME Group announced it would acquire the Kansas City Board of Trade for $126 Million in cash. KCBOT is the dominant venue for the sale of hard red winter wheat. The Chicago Board of Trade is the leading trade platform for soft red winter wheat.
On November 1, 2017, CME Group announced they would begin trading in Bitcoin futures by the end of 2017, pending regulatory approval.
On March 29, 2018, CME Group announced that it was buying London-based NEX Group for $5.5 billion. The acquisition was completed on November 2, 2018.
Chicago Mercantile Exchange (CME)
Chicago Board of Trade (CBOT)
New York Mercantile Exchange (NYMEX) and COMEX
Kansas City Board of Trade (KCBOT)
S&P Dow Jones Indices (27.0% ownership)