CME (Chicago Mercantile Exchange)

1. Definition

The CME (Chicago Mercantile Exchange) is the world's largest derivatives marketplace. It is part of the CME Group, which serves as the premier venue for managing risk.

2. Structure & Key Products

CME Group consists of four designated contract markets (DCMs): 1. CME: Equity Indexes (S&P 500, Nasdaq 100), FX (Euro, Yen), Cryptocurrencies (Bitcoin), Livestock. 2. CBOT (Chicago Board of Trade): Agricultural commodities (Corn, Soybeans, Wheat), U.S. Treasuries. 3. NYMEX (New York Mercantile Exchange): Energy (WTI Crude Oil, Natural Gas). 4. COMEX (Commodity Exchange): Metals (Gold, Silver, Copper).

3. Characteristics

• CME Globex: Its electronic trading platform operates nearly 24 hours a day, providing global access and high liquidity.
• Global Benchmark: The prices determined here (like WTI Oil or the 10-Year Treasury yield) serve as the global standard for the economy.
• Risk Management: It is the primary hub where banks, hedge funds, and corporations go to hedge their exposure to price movements.