CME Group

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CME Group Inc.
Public
Traded asNASDAQCME (Class A)
S&P 500 Component
ISINUS12572Q1058 Edit this on Wikidata
IndustryFinancial Services
Founded1841; 178 years ago (1841) (oldest exchange Chicago Board of Trade)
HeadquartersChicago, Illinois, United States
Key people
Terrence A. Duffy
(Chairman & CEO)
John W. Pietrowicz
(CFO)
Leo Melamed
(Chairman Emeritus)
RevenueIncrease US$ 4.31 billion (2018)
Increase US$ 2.61 billion (2018)
Increase US$ 1.96 billion (2018)
Total assetsIncrease US$ 77.48 billion (2018)
Total equityDecrease US$ 25.97 billion (2018)
Number of employees
2,830[1] (2017)
SubsidiariesChicago Mercantile Exchange
Chicago Board of Trade
New York Mercantile Exchange
Commodities Exchange, Inc.
NEX Group
Kansas City Board of Trade
S&P Dow Jones Indices (27.0% ownership)
Websitewww.cmegroup.com
Footnotes / references
[2]

CME Group Inc. (Chicago Mercantile Exchange & Chicago Board of Trade) is a global markets company.[3] It owns large derivatives, options and futures exchanges in Chicago and New York City using its CME Globex trading platforms.[4][5] 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.[6] It has been described by The Economist as "The biggest financial exchange you have never heard of".[7]

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.

Mergers and acquisitions[edit]

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. On March 17, 2008, New York Mercantile Exchange (NYMEX), which had also recently "demultualized", accepted an offer from CME Group to purchase NYMEX for $8.9 billion in cash and CME Group Stock. [8] The acquisition was formally completed on August 22, 2008, and the NYMEX systems were fully integrated by September 30, 2009.[9] Also in 2007, NYMEX in a joint venture with partners on the Arabian Peninsula opened the Dubai Mercantile Exchange (DME).[10]

On February 10, 2010, CME announced its purchase of 90% of Dow Jones Indexes, including the Dow Jones Industrial Average.[11] CME subsequently contributed Dow Jones Indexes to the formation of S&P Dow Jones Indices in exchange for a 24.4% ownership interest.[12] 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%.[13]

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.[14][15]

On November 1, 2017, CME Group announced they would begin trading in Bitcoin futures by the end of 2017, pending regulatory approval.[16][17]

On March 29, 2018, CME Group announced that it was buying London-based NEX Group for $5.5 billion.[18] The acquisition was completed on November 2, 2018.[19][20]

See also[edit]

References[edit]

  1. ^ "CME Group". Fortune. Retrieved February 5, 2019.
  2. ^ "US SEC: Form 10-K CME Group Inc". U.S. Securities and Exchange Commission. Retrieved February 15, 2018.
  3. ^ Stafford, Phillip (May 9, 2019). "CME gains boost with new 'micro' futures contracts". The Financial Times. Retrieved May 13, 2019.
  4. ^ "CME looks to the futures in Europe". Futures & Options World. June 3, 2014. Retrieved April 8, 2016.
  5. ^ "London stock exchange welcomes CME group to celebrate its global partnership with FTSE Russell". Lseg.com. Retrieved January 21, 2019.
  6. ^ "CME Group Volume Averaged 12.2 Million Contracts per Day in 2010, up 19 Percent; Double-Digit ADV Growth for Fourth Quarter and December". MediaRoom.com (Press release). CME Group. January 4, 2011. Retrieved July 21, 2013.
  7. ^ "CME Group: The futures of capitalism". The Economist. May 11, 2013. Retrieved April 8, 2016.
  8. ^ "CMEgroup.com". Cmegroup.mediaroom.com. Retrieved September 22, 2012.
  9. ^ "CMEgroup.com". Investor.cmegroup.com. Retrieved September 22, 2012.
  10. ^ "DME: Dubai Mercantile Exchange Strategic Partnership". www.cmegroup.com. Retrieved June 6, 2019.
  11. ^ Berman, Dennis K.; Mccracken, Jeffrey (February 11, 2010). "CME Buys 90% of Dow Jones Indexes". The Wall Street Journal.
  12. ^ Leising, Matthew (July 2, 2012). "McGraw-Hill, CME Group Start S&P Dow Jones Indices Venture". Bloomberg. Retrieved December 6, 2013.
  13. ^ "CME 10-K for the Fiscal Year Ended December 31, 2014". February 26, 2015. Retrieved June 8, 2018.
  14. ^ "CME Group to Acquire Kansas City Board of TradePrint" (Press release). Chicago / Kansas City, Missouri. October 17, 2012. Retrieved April 8, 2016.
  15. ^ "CME Group wraps up $126M acquisition of Kansas City Board of Trade". www.bizjournals.com. December 3, 2012. Retrieved March 5, 2019.
  16. ^ "Award winning trader's Bitcoin Price Forecast aims $8000". AtoZForex. Retrieved November 2, 2017.
  17. ^ Moyer, Evelyn Cheng, Liz (January 2, 2018). "E-Trade begins CME bitcoin trading as of Tuesday evening". www.cnbc.com. Retrieved March 5, 2019.
  18. ^ "CME Group agrees to buy Michael Spencer's Nex for £3.9bn". Financial Times. March 29, 2018.
  19. ^ "CME Group acquires Nex". November 2, 2018.
  20. ^ Sahloul, Fareed. "UK competition regulators clear CME's takeover of NEX". www.fnlondon.com. Retrieved March 5, 2019.

External links[edit]