CME Group Inc.

Definition

CME Group Inc. is a global markets company that operates some of the world's largest financial exchanges, including those for commodities, futures, and options. It offers products that help manage risk in various sectors like agriculture, energy, and metals.

5 Must Know Facts For Your Next Test

1. CME Group was formed by the merger of the Chicago Mercantile Exchange and the Chicago Board of Trade in 2007.
2. The company provides a platform for trading futures contracts which are essential tools for hedging commodity price risks.
3. It also offers clearing services which ensure the integrity and stability of financial markets.
4. CME Group's electronic trading platform, CME Globex, operates nearly 24 hours a day to facilitate global trading.
5. The company's products are used by financial managers to hedge against price fluctuations in commodities like oil, gold, and agricultural goods.

Review Questions

• What was the significance of the merger that created CME Group Inc.?
• How does CME Group help manage commodity price risk?
• What role does CME Globex play in global trading?

Related terms

Futures Contract: A legal agreement to buy or sell a particular commodity at a predetermined price at a specified time in the future.

Hedging: A risk management strategy used to offset potential losses by taking an opposite position in a related asset.

Commodity Exchange: A regulated market where traders can buy and sell commodity contracts such as grains, metals, or energy products.