Chicago Board of Trade

In this paper we will discuss about the Chicago Board of Trade (CBOT). As the name suggests, it is based in Chicago, USA. The CBOT was established in 1848. It provides a centralized platform to the future traders for negotiating their forward contracts.
In 2005, the CBOT went to the public and in 2007, it merged with the Chicago Mercantile Exchange and formed the Chicago Mercantile Exchange Group Inc.
The Chicago Board of Trade is the oldest exchange for futures and options trading in the world. It had been founded in 1848.
More then 3,600 people have taken the membership of the Chicago Board of Trade (CBOT) and they trade with 50 different kinds of future and option contracts through electronic trading and open outcry.
The CBOT launched the first standardized forward contracts for exchange trading ever in 1864. It was named as future contracts.
The Chicago Butter and Egg Board, a division of the CBOT, was regrouped in 1919 to facilitate the members with future trading and renamed as the Chicago Mercantile Exchange.
In 1977, the Chicago Board of Trade Building had been entitled as Chicago Landmark. The building is currently addressed as a National Historic Landmark.
In 2003, CBOT registered 454 million contracts which was a record. The CBOT went public, that is, it issued an initial public offer, in 2005, and the share price was 54 dollars. On its first day of trading, CBOT’s share price closed at 80.50 dollars.
In 2006, the Chicago Board of Trade initiated future trading in the agricultural sector.
In 2007, the Chicago Mercantile Exchange acquired CBOT for 8 billion dollars and the new entity was named as Chicago Mercantile Exchange Group Inc.
The Chicago Board of Trade provides a centralized platform to the future and option traders where they can gather and negotiate the forward contracts.

 

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Last Updated on : 27th June 2013

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