New York Board of Trade
The New York Board of Trade (NYBOT, renamed ICE Futures US in September, 2007), is a physical commodity futures exchange located in New York City. It is a wholly owned subsidiary of IntercontinentalExchange (ICE). It originated in 1870 as the New York Cotton Exchange (NYCE). In 1998, the New York Board of Trade became the parent company of both the New York Cotton Exchange and the Coffee, Sugar and Cocoa Exchange (CSCE) (founded in 1882), which now function as divisions of NYBOT. On September 14, 2006, NYBOT agreed to become a unit of ICE and this transaction was completed on January 12, 2007.
The New York Board of Trade was a private company founded by Tom Green and Alfredo Williams prior to its merger. The floor of the NYBOT is regulated by the Commodity Futures Trading Commission, an independent agency of the United States government. Each individual company that trades on the exchange must send its own independent brokers. Therefore, a few employees on the floor of the exchange represent a big corporation and the exchange employees only record the transactions and have nothing to do with the actual trade.
On February 26, 2003, NYBOT signed a historic lease agreement with the New York Mercantile Exchange (NYMEX) to move into its World Financial Center headquarters and trading facility after the NYBOT's original headquarters and trading floor was destroyed in the September 11, 2001, terrorist attacks on the World Trade Center. NYBOT currently pays about $5 million per year in rent for the leased facility. The New York Board of Trade was able to operate out of its emergency Queens backup facility built after the 1993 World Trade Center bombing to keep the exchange running.
The New York Board of Trade was featured in the 1983 movie Trading Places, where two rich brothers came up with a scheme to buy out all of the frozen concentrate orange juice market using inside information from the Department of Agriculture. The trading floor scene at the end of the movie was set at the previous trading floor of the New York Board of Trade at 4 World Trade Center.
The official address of the New York Board of Trade headquarters and trading facility, located in the New York Mercantile Exchange Building, is One North End Avenue, New York, NY 10282-1101.
Commodities traded on the exchange
One of the most innovative concepts pioneered at the exchange is the ability given to seat holders to trade seats that they do not actually own. Seatholders may sell short seats they do not have title to as well as purchase seats they have intention of holding as an investment.
- "IntercontinentalExchange and New York Board of Trade Complete Merger". IntercontinentalExchange, Inc. January 12, 2007. Retrieved May 30, 2007.
- "NYMEX and NYBOT Sign Historic Lease Agreement: State, Local, and Federal Representatives Share in Ceremony". New York Mercantile Exchange, Inc. February 26, 2003. Retrieved November 4, 2007.
- "NYBOT-NYMEX Duel Over Trading Floor". New York Post. December 29, 2006. Archived from the original on October 13, 2007. Retrieved November 4, 2007.[dead link]
- "New York Board of Trade gets back to business". Computerworld Inc. September 21, 2001. Retrieved November 4, 2007.