Chicago Mercantile Exchange (CME)
The Chicago Mercantile Exchange is the United States largest futures
exchange, as well as the second largest in the world. It trades futures and options
on interest rates, stock indexes, foreign currencies, and agricultural
commodities. In 2004, the exchange traded 805.3 million contracts with a value
of $463.4 trillion.
The CME is one of the few exchanges that still utilize the open outcry
system of trading. Under this system, the traders all gather on the trading
floor and call out their bids and offers. Different colored
jackets are used to distinguish the various participants, and hand signals are
also often used, as the shouting can make it hard to hear. The exchange has two
main trading floors, one for the foreign currency and interest rate derivatives
and another for the agricultural commodities and stock index derivatives. The
CME also utilizes electronic trading, using GLOBEX2. This system allows for 24
hour trading while also allowing traders who are not physically located on the
Chicago trading floor to participate.
For more information, consult the CME website: