Chicago Mercantile Exchange (CME)

What Is the Chicago Mercantile Exchange? (CME)

Initially founded in 1898 under the name "Chicago Butter and Egg Board,” CME is one of the most important exchanges in the United States. In 1919, the exchange renamed itself the Chicago Mercantile Exchange and became a standard among traders in the country. While initially, the futures and stocks the exchange offered were focused predominantly on the foods and beverages industry, today CME is a leading exchange provider.

In many respects, CME is a revolutionizing force on the American stock market. In 1961, it was one of the first exchanges to start offering features. In 1972, CME introduced the first interest bond in the US, and CME was the first exchange  in 2000 to become a corporation, which is entirely owned by its shareholders. 

In 2007, the CME exchange entered into a merger agreement with the Chicago Board of Trade, essentially creating the CME group, one of the largest financial exchanges globally. Since then, the CME has been actively purchasing partial or full ownership in other exchanges all over the U.S., including the New York Mercantile Exchange (NYMEX) and Commodity Exchange, Inc (COMEX). In 2010, CME Group also acquired a 90% interest in the Dow Jones stock and financial indexes, while in 2012, the group purchased the Kansas City Board of Trade.