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CME Group Inc. operates large futures exchanges in Chicago and New York City. It is headquartered in Chicago and was formed by the 2007 merger of the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT). On March 17, 2008, it announced its acquisition of NYMEX Holdings, Inc., parent company of the New York Mercantile Exchange and Commodity Exchange, Inc (COMEX), which was formally completed on August 22, 2008. The 3 Exchanges and the Board now operate as Designated Contract Markets (DCM) of the CME Group. On February 10, 2010, CME announced its purchase of 90% of Dow Jones Indexes including the DJIA.CME Group owns 5 % of BM&F Bovespa, the Sao Paulo stock exchange and BM&F Bovespa owns 5% of CME Group.
About CME Group
As the world¶s leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through the CME Globex electronic trading platform and trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-thecounter derivatives transactions through CME ClearPort. Serving the Risk Management Needs of Customers Around the World Building on the heritage of CME, CBOT and NYMEX, CME Group serves the risk management needs of customers around the globe. They provide the widest range of benchmark futures and options products available on any exchange, covering all major asset classes. Their collective vision is one of ongoing global growth, innovative product development, continually enhanced technology and the highest level of service available on any exchange. Specifically, they offer futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investment products such as weather and real estate. More than three quarters of their trading volume comes from trades made electronically on our CME Globex electronic trading platform.
provided by massive scale and product diversity. customers with reduced connectivity costs and fast. metals. efficient access to our electronic markets. Superior Trading Technology With vast capability to facilitate the most complex and demanding trading. the CME Globex platform offers trading virtually 24 hours a day throughout the trading week ± more than any other exchange in the world. Their deep liquidity. CME Group is listed on the NASDAQ under the symbol "CME. worth more than $1." CME Group Strengths Leading Size and Scale When we trade at CME Group. interest rate yield curve. Many of their largest contracts serve as benchmarks for investors worldwide.100 direct customer connections to CME Globex. CME Clearing limits accumulation of losses or debt with twice daily mark-to-market settlement. CME Group is the only exchange to offer access to all major asset classes from a single electronic trading platform and trading floors in Chicago and New York. foreign exchange. we benefit from the liquidity of trading at the largest and most diverse exchange in the world. as well as eight telecommunications hubs in key financial centers in Europe and Asia. clearing trades.S. collecting and maintaining performance bond funds. supports our customers' ability to execute large purchase and sales orders quickly and efficiently Most Diverse Product Line A proven leader in product innovation. and alternative investment products. Financial Safeguards CME Clearing ± the largest derivatives clearing facility in the world ± protects the financial integrity of our markets by serving as the counterparty to every trade and virtually eliminating credit risk. It is responsible for settling trading accounts. virtually around-the-clock electronic trading and strategic alliances with other exchanges. We also offer a number of programs and products designed specifically to appeal to a global audience.S. equity indexes. They handle more than one billion contracts per year. CME Clearing matches and settles our trades and guarantees the creditworthiness of every transaction that takes place in our markets. regulating delivery and reporting trading data. These include products based on the U. . energy. agricultural commodities. These hubs provide non-U. There are more than 1. Customers from more than 80 countries trade our products.They serve customers around the world with a global product line. such as weather and real estate.000 trillion.
CBOT and NYMEX/COMEX members. hedge funds and large institutions alike see and have access to the same prices with complete anonymity in all bids. transparent and anonymous. .Members of CME Group¶s legacy exchanges continue to trade on the same terms as before the merger transactions.Transparent and Anonymous Marketplace Their markets are fair. participants need to have memberships at each of the CME Group legacy exchanges. Global Partners BM&F BOVESPA Bolsa Mexicana de Valores Bursa Malaysia DME Dubai Mercantile Exchange Green Exchange Imarex JSE (South Africa) KCBT ² Kansas City Board of Trade Korea Exchange MGEX ² Minneapolis Grain Exchange National Stock Exchange of India Singapore Exchange Limited Membership at CME Group CME Group represents the merger of the Chicago Mercantile Exchange (CME). the New York Mercantile Exchange (NYMEX) and its commodity exchange division. however. Inc. result in any change to trading privileges for CME. (COMEX). offers and execution reports. To cross-trade products at member rates. Individual investors. The formation of CME Group did not. and our electronic trading platform offers the same opportunities for all participants. Commodity Exchange. the Chicago Board of Trade (CBOT).
Badge: Green y Index and Option Market (IOM) (B3) membership: y Trades: Index futures contracts. and all. when the exchange de-mutualized and became a publicly traded company in 2002. you must be an adult and possess good moral character. CME (B1) membership: y y Trades: Any CME-listed contract Badge: Gold International Monetary Market (IMM) (B2) membership: y Trades: Foreign exchange. interest rate and equity index futures. all options contracts. Badge: Blue y Growth and Emerging Markets (GEM) (B4) membership: y Trades: Various products. . random length lumber contracts.CME Individual Memberships Description There are four divisions of individual CME memberships. representing the four levels of access to CME products that the Exchange had developed through the years. In addition. and all GEM products. restricted financials Badge: Gray y Eligibility and requirements. Individual memberships at CME became attached to a Class B share in Chicago Mercantile Exchange Holdings Inc. To be an individual member of CME. including contracts related to emerging market countries. IOM and GEM products. you must have adequate financial resources to assume the responsibilities and privileges of membership. a good reputation and business integrity.
high-volume capacity. . providing access to the broadest array of futures and options products available on any exchange. It also offers: y y y y y High speed trade execution Vast capabilities to facilitate the most complex and demanding trading Direct market access and central counterparty clearing Fairness. ongoing development efforts. transparency and anonymity Global distribution and international hubs Customers benefit from direct connectivity. improved options capabilities and a range of new products. a single source for customer support and highly efficient access to real-time market data. The platform is continuously enhanced to serve customers high-speed.Product Highlights Agricultural Product Interest rate Energy Equities Metal FX Weather Credit Electronic Trading Links overview CME Globex is the world¶s leading electronic trading platform. Customers trade on CME Globex around the globe and virtually around the clock.
accounts. as well as their own. Central clearing was created to remove that risk. In those markets. Overview of CME Clearing What Is Clearing? People who buy and sell futures contracts on a futures exchange do not buy and sell directly to one another. They actually buy contracts from and sell contracts to a clearing house. Successfully handling this task on a daily basis requires the coordination of a complex set of operations. . highly capitalized. CME Clearing monitors and processes more than one billion trades each year. What Is a Clearing House? A clearing house is a financial institution comprised of members. worth more than $1. This leaves them open to the possibility of default by one of the parties to the trade. participants trade directly with one another. sophisticated computer systems and a highly trained staff. and ensures the financial integrity of each transaction. Clearing members represent the trades of their customers and vouch for the soundness of their customers¶. Each component must function flawlessly to meet the requirements of CME Clearing¶s financial safeguards system. the clearing house virtually eliminates credit risk for each market participant. Why Central Counterparties Are Important A central counterparty provides an important customer advantage compared to over-the-counter markets ± the OTC markets. closely monitored and carefully selected companies that keep funds on deposit with the clearing house. which stands in between all trades to ensure that the obligations involved in the trades are made good. By serving as the buyer to every seller and the seller to every buyer.000 trillion. all working together as a single unit.Clearing Ensuring the Safety and Soundness of Our Markets.
Other Roles of the Central Counterparty The role of the central counterparty has expanded over time to include: y y y y Transaction processing Post trade management functions Financial management of members collateral deposits Final settlement of outstanding obligations through financial payment or physical delivery The overall risk management of market participants A financial guarantee of performance of its contracts y y Why CME Clearing CME Clearing provides industry-leading risk management . legally binding contracts ± one between each of the original trading counterparties and the central counterparty. In its more than 100-year history. nor has there been a failure of a clearing member firm resulting in a loss of customer funds. CME Clearing helps to limit the accumulation of losses or debt .helping each customer manage its risk as well as containing risk for the market as a whole. By marking positions to market twice each day. there has never been a failure by a clearing member to meet a performance bond call or its delivery obligations.The Legal Term: Novation The substitution of counterparties is accomplished through a legal process called contract novation. CME Clearing is available 24-hours a day. Novation discharges the contract between the original trading counterparties and creates two new.an important part of the CME Group value proposition. six days a week. . It has helped customers manage risk during periods of unprecedented derivatives industry growth and times of economic uncertainty.
In the event your original counterparty (clearing member/dealer/other customer) defaults.Products from multiple asset classes can be cleared or reported through CME ClearPort. asset management firms and proprietary trading firms) continue to negotiate transactions through their IDB or dealer. corporate treasuries. .Comprehensive Clearing Services CME ClearPort offers an array of clearing services that depend on the nature of the product we trade. Clearing members collect margin from clients. How CME ClearPort Works CME ClearPort preserves the customer and dealer relationship and adds an extra level of protection to the transaction. insulating other clearing members dealers and other customers from losses. the central counterparty covers the counterparty's obligations. y y y Customers (such as hedge funds. Then they clear those transactions through a clearing member of CME Clearing (the central counterparty clearing house). who in turn provide margin to the central counterparty.
NYMEX and COMEX are independent exchanges. each of which maintains its own set of rules. CBOT. competitive and transparent markets. Issues. the CME. CBOT. efficient. manipulation and other abusive trading practices. monitors and enforces rules to protect all market participants from fraud. CBOT and NYMEX rulebooks have been substantially harmonized. it: y y y Conducts thorough and detailed investigations. Acts proactively to identify and mitigate potential risks as a means of preventing damage to the marketplace Market Regulation conducts daily trade. position. NYMEX and COMEX CME. Exchange-Specific Rules for CME. the department: y y y Protects market integrity by maintaining fair. account and user surveillance in our markets to identify potential trade practice abuses and other market concerns. Although all four exchanges have been merged to form CME Group. As part of its mission. The Rulebooks are listed below: y y y CME Rulebook CBOT Rulebook NYMEX Rulebook . In order to provide a common regulatory framework for market users. Provides information and guidance to market participants on our rules via the issuance of Market Regulation Advisory Notices (MRANs) and other communications.About Market Regulation CME Group's Market Regulation Department ensures that all four (CME. numbering and language where possible. In addition. each exchange remains a separate self-regulatory organization. CBOT. making the rules parallel in structure. NYMEX and COMEX) of our Designated Contract Markets (DCMs) fulfill their self-regulatory responsibilities. Monitors and reviews the accuracy of audit trail data. Please note that the rules in the NYMEX Rulebook are applicable to both NYMEX and COMEX.
Anywhere. Choose to receive data directly from us or via a third party distributor. CME-E-quotes Real-time market data. market reports and a comprehensive historical data service. Resources Trading Resources Trading Hours Floor Trading Product Code Guide Quote Vendor Symbols Performance Bonds/Margins Volume/Open Interest Reports Calendars Product Calendar Holiday Calendar Event Calendar General Resources Corporate Governance Rulebooks Customer Service Press Releases Glossary Subscription Center Advisory Notices Trading and Clearing Fees Find a Broker Trading Simulators Agriculture Conversion Calculator Daily Bulletins . They also offer data distribution and redistribution opportunities. Anytime.Market Data Services Links Delayed-Quotes Licensed-Distributors Real-Time-Quotes&Charts Historical-DataServices Delayed-SpreadQuotes Daily Bulletin Volume & Open Interest Daily-Settlements Reports Information for Distributors Overview They offer a wide range of market data services ± including live quotes. delayed quotes.
y . a commodity. Dubai. Indians normally buy about 25 per cent of the world's gold. Mumbai (MCX) Istanbul. India in World Gold Industry (Rounded Figures) Total Stocks Central Bank holding Annual Production Annual Recycling Annual Demand Annual Imports Annual Exports India (In Tons) 15000 558 3 250 700 600 60 World (In Tons) 160000 30.100 2450 1100 3550 ----% Share 9 2 0 23 20 ----- Indian Gold Market y India is the world's largest consumer of gold. the sharp price increase in 2008 and 2009 has impacted demand with total demand in 2008 dipping to 660 tonnes.750 tonnes of gold every year. New York and Zurich Gold derivative exchanges at New York ± CME (COMEX). It is further expected to shrink in 2009 with demand in first three quarters of 2009 totaling only around 265 tonnes against 553. World Gold Markets OTC markets at London (LBMA). Tokyo (TOCOM).COMMODITIES OF CME GROUP Gold Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency. Hong Kong and Singapore are doorways to important consuming regions.5 tonnes in the same period of the previous year. an investment and simply an object of beauty. However. purchasing around 700 .
This reduced the disparity between international and domestic prices of gold from 57 percent during 1986 to 1991 to 8. harvest and marriage season.m.5 percent in 2001. assaying. as compared to the rest of the world. both qualitatively and quantitatively.y As India's domestic primary production of gold is very less.m.m. However. In July 1997 the RBI authorized the commercial banks to import gold for sale or loan to jewellers and exporters. India is also the largest importer of the yellow metal and has averaged imports of around 600 tonnes a year. In the cities gold is facing competition from the stock market and a wide range of consumer goods. to 2.00 a. are insignificant. Facilities for refining. India's gold demand is firmly embedded in cultural and religious traditions. It is also valued in India as a savings and investment vehicle and is the second preferred investment after bank deposits. the country imports most of its domestic requirement. 13 banks are active in the import of gold. At present.00 p. 1 per 10 grams . making them into standard bars. at around 2-3 tonnes a year. y y y y y y TRADING Trading period Trading session Mondays through Saturdays Mondays to Friday: 10. coins in India.00 a. Trading unit Quotation / Base value Maximum order size Tick size (minimum price movement) 1 kg 10 grams 10 kg Re.m. Indian jewellery offtake is sensitive to price increases and even more so to volatility. Thus.30 p. 2008 imports dipped to around 400 tonnes of gold and it is further expected to dip to around 200-220 tonnes in 2009 owing to high prices. Saturday: 10. to 11. Domestic consumption is dictated by monsoon.
Karat: Pure gold is defined as 24 karat. y y . it is expected to dip slightly in 2009.63. 17% held as investment. 51% is estimated to be present as jewellery. Global Supply Demand Scenario y The total above ground stocks of gold is estimated to be around 1.2008). The total annual global demand for gold has averaged 3530 tonnes in the last three years (2005 . Thus. Jewellery accounts for almost two-thirds of annual gold demand with investment and industry being the other main drivers. 18% as official reserves.Contracts available for trading February contract 2010 Immediately after approval of the Commission to 5th February of the contract year Immediately after approval of the Commission to 5th April of the contract year 16th June of the previous year to 5th June of the contract year 16th August of the previous year to 5th August of the contract year April 2010 contract June 2010 contract August 2010 contract October contract December contract 2010 16th October of the previous year to 5th October of the contract year 2010 16th December of the previous year to 5th December of the contract year Purity Gold purity is measured in terms of karats and fineness. owing to the sharp rise in prices.000 tonnes by Gold Fields Minerals Services (GFMS) as on end of 2008 Out of this total stock. 12% used for industrial purposes and 2% is unaccounted for. 18 karat = (18/24)th of 1000 parts = 750 fineness. Fineness: Parts per thousand. However.
The demand for gold coins for retail investment is estimated to be around 35 tonnes in India and this is expected to grow at a rate of 40% in the coming years. Australia. . Gold Guinea refers to 8 gram gold coins of atleast 0.455 tonnes per year over the last three years. South Africa has been a major gold producer since 1880s and it is estimated that about 50% of all gold ever produced has come from this nation. which are mainly utilized as a retail investment. While. Russia and Peru. Saudi Arabia and UAE account for above 60% of gold demand. originally worth one English Pound sterling and weighing around 8. China. The other major producers are USA. In the India context. Recycling of old gold scrap and official sector sales are the other major sources of supply. averaging approximately 2. China with a production of 276 tonnes. The name was derived from Guinea in Africa. The total global mine production is relatively stable.y Five countries.Other details for Gold Guinea is same as that of gold. y y y Gold Guinea Gold Guinea is a coin that was minted in the United Kingdom between 1663 and 1813. the output in 2007 dropped to just 272 tonnes. overtook South Africa as the world's largest gold producer in 2007 for the first time since 1905 that South Africa has not been the largest..4 grams.3-8. from where most of the gold used to make these coins originated. India. with each market driven by a different set of socio-economic and cultural factors. viz. Turkey. which have averaged 1084 tonnes and 378 tonnes in the last three years. USA. Note:.995 purity. during the early 1980's it produced about 1000 tonnes.
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