In 1948, the establishment of The Chicago Board of Trade (CBOT) takes place. There are 3,600 CBOT members who are trading more than 50 different options and futures contracts through open outcry and e-trading. The CBOT is known as the world’s oldest futures and options exchange.

The Building of CBOT

Since 1930, the CBOT has been operating from 141 West Jackson Boulevard, Chicago. The building has been designed by the architects Holabird and Route . Measuring 184.4 meters (605 feet) tall, it is art deco in design and it has incorporated sculptural work by Alvin Meyer. There is a is a sculpture of Ceres, the Roman goddess of plants on top of the building . This is in reference to CBOT’s heritage as an agricultural commodities market.

Main method of Trading

For several years, open auction was the main method of trading. In this method the traders were required to meet face to face in the pit in order to buy and sell futures contracts. In 1994, first electronic trading system was launched by CBOT, which was implemented to meet the needs of the growing global economy.

Main aim of CBOT

To trade futures and options on futures, either through electronic or auctions means is the main aim of the CBOT. For its stockholders, members and customers, it provides liquid and transparent contract markets, by whom the CBOT is used for risk management, price discovery and investment purposes. Speculators around the world are allowed by the futures markets to interpret news, economic information and other data. This information is used by speculators to reach decisions about price and invest if the price looks financially viable.

Commodities in which CBOT deals

In the beginning, the CBOT traded only in agricultural commodities such as wheat, oats, corn and soya beans. Since then it has progressed significantly. In 2001, a new trading category of 100% gold and silver futures contracts has been launched by the CBOT. In a response to shifting trends in the agricultural global market the exchange’s newest products include South American soybean futures and ethanol futures.

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