Kansas City Board of Trade
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|Kansas City Board of Trade|
|Type||Commodity futures and options exchange|
|Location||Kansas City, Missouri, United States|
|Founded||1856 (as a chamber of commerce)
1876 (formal charter)
|Commodities||Hard-red winter wheat|
|Indices||Value Line Composite Index|
The Kansas City Board of Trade (KCBT), is an American commodity futures and options exchange regulated by the Commodity Futures Trading Commission. Specializing in the hard-red winter wheat, it is located at 4800 Main Street in Kansas City, Missouri.
On October 17, 2012, CME Group announced it would acquire the exchange for $126 million in cash. Under the terms, the Kansas City trading floor would remain for at least six months. KCBT market participants will advise CME for at least three years. It has since been announced that the trading floor will be consolidated with the Chicago operations in June 2013.
The exchange was organized in 1856, shortly after Kansas City itself was incorporated in 1853, and served as the city's chamber of commerce. It was formally chartered in 1876; among the exchange's founders was Edward H. Allen.
It was originally located at 8th and Wyandotte Streets. In 1925, the exchange moved to 10th and Wyandotte Streets and in 1966, it moved to its present location at 48th and Main Streets on the Country Club Plaza.
The primary products traded at the exchange are futures contracts on hard red winter wheat – the principal ingredient of bread – as well as options derived from these. Because of its nutritional value, the hard red winter wheat usually trades at a premium to the Chicago Board of Trade's soft red winter wheat. The exchange facilitates the transfer of ownership of the futures and options contracts through the open outcry system.
In 1982, the exchange introduced Value Line futures, making it the first exchange offering a stock index futures contract. Options on Value Line futures were introduced in 1992. As of December 12, 2004, the Value Line futures began traded solely through an electronic-trading platform. Value line futures have since been de-listed.
Tours, available by appointment on trading-day mornings, enable visitors to learn about commodities futures and to watch trading activity from the gallery.
- List of futures exchanges
- List of traded commodities
- Value Line Composite Index, traded on the futures market at the Kansas City Board of Trade
- kcbt.com, exchange's official website