A futures exchange serves as a platform to buy or sell exchangeable futures agreements. According to this contract, the quantity, price and the delivery date of commodities or financial instruments are set prior to the original transaction. Dealing in futures can produce high yields at times and can be done through these futures exchanges only.
The futures exchanges are located throughout the world. Again, the futures exchanges are different from each other in terms of the products that are purchased or sold in these markets.
The rules and regulations are also different for various futures exchanges depending upon the nature of products traded there.
Brief History of Futures Exchanges
The modern concept of futures exchanges was materialized in 1848 in Chicago. The first futures exchange was founded there.
In 1865, the exchange was modified and the exchangeable futures agreements were offered to the public for the first time. A series of development took place in the exchange and in 1972, the futures agreement in extraneous currencies were introduced through the International Monetary Market.
With the development of the exchange in Chicago, the development of these future exchanges started taking place in the whole world along with different parts of United States of America. With the technological advancements, the futures exchanges are also shifting towards online trading and because of this, the trading volume is increasing day by day.
Process of Trading in Futures Exchanges
The process of trading in the futures exchanges is not same as it is done in the securities exchanges. Here the process of trading is mainly carried out by the brokers who accept the orders of the individuals and bring them to the exchange floor. The future contracts are created and not issued, as it is done in the securities market. The exchanges not only provide the trading facilities, but at the same time, these futures exchanges also offer settlement facilities.
Some of the leading futures exchanges of the world are the following:
Montreal Exchange (Canada)
New York Board of Trade (USA)
Chicago Board Options Exchange (USA)
International Monetary Market (USA)
Commodity Exchange (USA)
U.S. Futures Exchange (USA)
London International Financial Futures and Options Exchange (United Kingdom)
Shanghai Futures Exchange (China) 
China Financial Futures Exchange (China)
National Stock Exchange of India (India)
Last Updated on : 1st July 2013