CME Group

The Chicago Mercantile Exchange (CME), was founded in 1898 as a nonprofit corporation. In 1919, it established its clearing house. In 2000, CME demutualized (became a joint stock company). In 2002, CME Group, the parent company of CME, became a public company via an initial public offering.

On July 12, 2007, CME Group completed a merger with the CME's historical rival, the holding company for the Chicago Board of Trade, founded in 1848, in an $8 billion deal that created the world's largest financial market.{{cite news|last=Barrionuevo|first=Alexei|title=2 Exchanges in Chicago Will Merge|work=The New York Times|url=https://www.nytimes.com/2006/10/18/business/18exchange.html|date=October 18, 2006 |access-date=November 9, 2022}}{{cite news |last1=Lucchetti|first1=Aaron|last2=MacDonald |first2=Alistair |last3=Taylor |first3=Edward |url=https://www.wsj.com/articles/SB116108656852895012 |title=Chicago Merc to Buy Board of Trade|work=The Wall Street Journal |publisher=Dow Jones & Company, Inc. |date=October 18, 2006 |access-date=November 9, 2022}}{{cite news |last=Krasny |first=Ros |url=https://www.reuters.com/article/us-cbot-cme-meeting/cme-buy-of-cbot-easily-approved-by-shareholders-idUSN0930635920070709 |title=CME buy of CBOT easily approved by shareholders |work=Reuters |date=July 9, 2007 |access-date=November 9, 2022}} The company then launched as CME Group Inc., a CME/Chicago Board of Trade Company.{{cite news |last=Krasny |first=Ros |url=https://www.reuters.com/article/cbot-delisting/cbot-shares-to-be-delisted-at-close-of-trade-idUSWNAS586920070712 |title=CBOT shares to be delisted at close of trade

|work=Reuters |date=July 12, 2007 |access-date=November 9, 2022}}{{cite web |url=http://investor.cmegroup.com/news-releases/news-release-details/cme-and-cbot-complete-merger-creating-leading-global-financial |title=CME and CBOT Complete Merger Creating the Leading Global Financial Exchange |work=CME Group|date=July 12, 2007 |access-date=November 9, 2022}}

In 2012, Phupinder Gill, then CME Group's president and COO, became the company's CEO.

In November 2016, Gill retired from his role and Terrence A. Duffy, then executive chairman and president of the company, took on an expanded role as its CEO.{{cite news |last=Basar |first=Shanny |title=Exchanges Oppose FTX Clearing Proposal Before Congress |url=https://www.tradersmagazine.com/featured_articles/exchanges-oppose-ftx-clearing-proposal-before-congress/ |work=Traders Magazine |publisher=Markets Media Holdings LLC |access-date=September 11, 2022}}

In 2021, the firm struck a partnership with Google to build its cloud strategy, which saw the tech giant investing $1 billion in CME Group.{{cite web|url=https://www.wsj.com/articles/google-invests-1-billion-in-exchange-giant-cme-strikes-cloud-deal-11636029900|title=Google Invests $1 Billion in Exchange Giant CME, Strikes Cloud Deal|work=Wall Street Journal |date=November 4, 2021 |last1=Osipovich |first1=Alexander }}

In 2022, CME Group futures and options reached a record average daily volume of 23.3 million contracts.{{cite press release|title="CME Group Reports Record Average Daily Volume of 23.3 Million Contracts Traded in 2022, an Increase of 19%"|url=https://www.prnewswire.com/news-releases/cme-group-reports-record-average-daily-volume-of-23-3-million-contracts-traded-in-2022--an-increase-of-19-301712900.html}}

On August 22, 2008, CME Group acquired New York Mercantile Exchange (NYMEX), owner of both the NYMEX exchange and the Commodity Exchange (COMEX), for $8.9 billion in cash and CME Group stock.{{cite book |editor1=Michael Molina|editor2=Xiaobing Li|date=2014 |title=Oil: A Cultural and Geographic Encyclopedia of Black Gold |publisher=ABC-CLIO |isbn=9781610692724 |url=https://books.google.com/books?id=Vy7TBAAAQBAJ&dq=cme+group+nymex+August+22,+2008&pg=PA203 |page=203 |access-date=November 9, 2022}}{{cite web |url=https://www.sec.gov/Archives/edgar/data/1105018/000119312508182956/dex991.htm |title=CME Group Inc. Completes Acquisition of NYMEX Holdings, Inc., Expands its Diversified Product Offerings to Include Energy and Metals and Also Announces Preliminary Election Results |publisher=CME Group |via=U.S. Securities and Exchange Commission |date=August 22, 2008 |access-date=November 9, 2022}}{{cite news |last=de la Merced |first=Michael |url=https://www.nytimes.com/2008/01/29/business/29exchange.html |title=Commodities Markets in New York and Chicago Discuss Merger |work=The New York Times |date=January 29, 2008 |access-date=November 9, 2022}}{{cite news |last=Leising |first=Matthew |url=https://www.inquirer.com/philly/business/20080318_Largest_futures_market_to_acquire_Nymex_Holdings.html#loaded |title=Largest futures market to acquire Nymex Holdings |work=Bloomberg News |via=The Philadelphia Inquirer |date=March 18, 2008 |access-date=November 9, 2022}}{{cite web |url=https://www.cmegroup.com/media-room/press-releases/2008/3/17/cme_group_inc_toacquirenymexholdingsincontermspreviouslyannounce.html |title=CME Group Inc. to Acquire NYMEX Holdings, Inc. on Terms Previously Announced |publisher=CME Group |date=March 17, 2008 |access-date=November 9, 2022}}

On February 10, 2010, CME Group agreed to purchase 90% of Dow Jones & Company's financial-indexes business, including the Dow Jones Industrial Average.{{Cite news |last1=Berman |first1=Dennis K. |last2=Mccracken |first2=Jeffrey |date=February 11, 2010 |title=CME Buys 90% of Dow Jones Indexes |work=The Wall Street Journal |url=https://www.wsj.com/articles/SB10001424052748703455804575057433840097028}}{{cite news |last=Spicer |first=Jonathan |url=https://www.reuters.com/article/us-cme-dow-indexes/cme-buys-90-percent-of-dow-indexes-in-joint-venture-idUSTRE6195JZ20100210 |title=CME buys 90 percent of Dow indexes in joint venture |work=Reuters |date=February 10, 2010 |access-date=November 9, 2022}} CME Group and Dow Jones & Company subsequently contributed the Dow Jones Indexes to the formation of S&P Dow Jones Indices joint venture, with CME Group receiving a 24.4% ownership interest and Dow Jones & Company receiving a 2.6% ownership interest in the joint venture.{{Cite web |last=Leising |first=Matthew |date=July 2, 2012 |title=McGraw-Hill, CME Group Start S&P Dow Jones Indices Venture |url=https://www.bloomberg.com/news/2012-07-02/mcgraw-hill-cme-group-start-s-p-dow-jones-indices-venture-1-.html |access-date=December 6, 2013 |publisher=Bloomberg}}{{cite news |last=Smith |first=Simon |url=https://www.etfstrategy.com/sp-dow-jones-indices-formed-from-merger-of-sp-indices-and-dow-jones-indexes-47812/ |title=S&P Dow Jones Indices formed from merger of S&P Indices and Dow Jones Indexes |work=ETF Strategy |date=July 3, 2012 |access-date=November 9, 2022}} In April 2013, CME Group purchased the remaining Dow Jones & Company interest for $80.0 million, increasing CME Group's interest in S&P Dow Jones Indices from 24.4% to 27.0%.{{Cite report |title=Form 10-K for the Fiscal Year Ended December 31, 2014 |publisher=CME Group Inc. |date=February 26, 2015 |section=Item 1. {{!}} Business {{!}} General Development of Business |quote=In April 2013, we purchased the [remaining] non-controlling interest ... from Dow Jones & Company ... increase in our ownership to 27% of the S&P/Dow Jones Indices LLC ...|url=https://www.sec.gov/Archives/edgar/data/1156375/000115637515000014/cme-2014123110k.htm |access-date=June 8, 2018}}

On December 3, 2012, CME Group acquired the Kansas City Board of Trade, the dominant venue for the sale of hard red winter wheat, for $126 million in cash.{{Cite web |date=December 3, 2012 |last=Dornbrook |first=James |title=CME Group wraps up $126M acquisition of Kansas City Board of Trade |url=https://www.bizjournals.com/kansascity/news/2012/12/03/cme-group-126m-acquisition-kcbt.html |access-date=November 9, 2022 |work=Kansas City Business Journal |publisher=American City Business Journals}}{{Cite press release |title=CME Group to Acquire Kansas City Board of Trade |date=October 17, 2012 |location=Chicago / Kansas City, Missouri |url=http://investor.cmegroup.com/investor-relations/releasedetail.cfm?ReleaseID=714182 |access-date=April 8, 2016}}

On March 15, 2016, the firm announced the sale of its suburban Chicago data center in Aurora, IL to CyrusOne for $130 million, in a leaseback transaction.{{cite web|url=https://www.reuters.com/article/idUSASC08GWB|title=CME group announces agreement to sell Aurora Data center to Cyrusone|website=Reuters }}

On November 2, 2018, CME Group acquired the London-based NEX Group for $5.5 billion.{{cite news |last=Sozzi |first=Brian |url=https://www.thestreet.com/markets/cme-group-agrees-5-5-billion-merger-with-britain-s-nex-14538684 |title=CME Group Agrees $5.5 Billion Merger With Britain's NEX

|work=TheStreet |date=March 29, 2018 |access-date=November 9, 2022}}{{Cite web |date=November 2, 2018 |title=CME Group acquires Nex |url=https://www.cmegroup.com/nex-acquisition.html}}

== Operations ==

CME Group operates a global derivatives marketplace that allows institutions and individuals to trade futures and options based on interest rates, equity indexes, foreign exchange, energy, metals, and agricultural commodities.{{cite book |last=Stowell |first=David |date=2012 |title=Investment Banks, Hedge Funds, and Private Equity

|url=https://books.google.com/books?id=HThWziP0X08C&dq=CME+group+global+benchmark+products+across+all+major+asset+classes+based+on+interest+rates,+equity+indexes,+foreign+exchange,+energy,+agricultural+commodities,+and+metals.&pg=PA150 |location=US |publisher=Elsevier Science |isbn=9780124158207 |access-date=September 11, 2022}}{{cite news |title=CME Group Inc.: CME Stands to Benefit From Rising Interest Rates as Volatility Returns to Its Markets |url=https://finance.yahoo.com/research/reports/MS_0P00000187_AnalystReport_1660915535000?ncid=dcm_306416306_490172245_127172993 |work=Yahoo! Finance |publisher=Yahoo! |access-date=September 11, 2022}}{{cite news |title=CME Group Inc. CI A |url=https://www.wsj.com/market-data/quotes/CME/company-people |work=Wall Street Journal |publisher=Dow Jones & Company, Inc. |access-date=September 11, 2022}} The company runs an electronic trading platform, CME Globex, which allows customers in approximately 150 countries to trade futures and options contracts.{{cite book |last=Jensen |first=Jones |date=2016 |title=Investment: Analysis and Management

|url=https://books.google.com/books?id=Zj_hCgAAQBAJ&q=%22CME%20globex%22 |location=US |page=105 |publisher=Wiley |isbn=9781118975589 |access-date=September 11, 2022}}{{cite news |last=Sterk |first=Ron |date=August 8, 2022 |title=From chalkboards to computers, futures evolve with the market

|url=https://www.bakingbusiness.com/articles/56982-from-chalkboards-to-computers-futures-evolve-with-the-market |work=Milling & Baking News |publisher=Sosland Publishing |access-date=September 11, 2022}}{{cite news |date=September 16, 2018 |title=The CME Group of exchanges |url=https://www.thehindubusinessline.com/portfolio/commodity-analysis/the-cme-group-of-exchanges/article24960938.ece |work=Business Line |publisher=Kasturi & Sons |access-date=September 12, 2022}}

The company also operates two cash market businesses: BrokerTec, which facilitates dealer-to-dealer trading for fixed-income markets,{{cite news |last=McAughtry |first=Laurie |date=September 8, 2022 |title=CME Group continues SOFR conversions as demand grows |url=https://www.thetradenews.com/cme-group-continues-sofr-conversions-as-demand-grows/ |work=The Trade |publisher=Tungsten Publishing |access-date=September 11, 2022}}{{cite news |last=Basar |first=Shanny |date=April 4, 2021 |title=BrokerTec Benefits From Migration To CME Globex |url=https://www.marketsmedia.com/brokertec-benefits-from-migration-to-cme-globex/ |work=Markets Media |publisher=Markets Media Holdings LLC |access-date=September 12, 2022}} and EBS, which provides foreign exchange spot trading.{{cite news |last=Oladipupo |first=Solomon |date=February 8, 2022 |title=CME Group's EBS Spot FX ADNV Rises 12% YoY to $64.5 Billion in July

|url=https://www.financemagnates.com/institutional-forex/cme-groups-ebs-spot-fx-adnv-rises-12-yoy-to-645-billion-in-july/ |work=Finance Magnates |publisher=Finance Magnates CY Ltd. |access-date=September 11, 2022}}

In addition, CME Group operates CME Clearing, which serves as a counterparty to every cleared transaction, including both listed and OTC derivatives, within the company's marketplace. CME Group is a member of CCP Global, a trade group of central counterparty clearinghouses from around the globe.{{cite book |last=Soumaré |first=Issouf |date=2012 |title=Commodity Exchanges: Concepts, Tools and Guidelines |url=https://books.google.com/books?id=mzRZEAAAQBAJ&dq=%22CME+Clearing%22+a+central+counterparty+clearing+provider.&pg=PA219 |location=US |publisher=Edward Elgar Publishing |page=219 |isbn=978-1800887039 |quote=CME Group provides clearing services for customers around the globe through its clearing house, CME Clearing, which allows them to significantly mitigate and manage their counterparty risk. CME Clearing is an intermediary between buyers and sellers in the derivatives market. |access-date=September 11, 2022}}{{Cite web |date=2014 |title=Derivatives Clearing 2014

|url=http://cbc0160473ff1edbdd2b-4ce70731905f3a244f0713892a76d3d9.r41.cf2.rackcdn.com/FIA%20DC%202014.pdf |publisher=FIA Europe |access-date=September 11, 2022 |quote=In derivatives markets we now see fragmentation of clearing across the likes of CME Clearing, ICE Clear, LCH.Clearnet and Eurex, not to mention the Asian clearing houses, for both OTC and exchange centrally cleared products.}}

CME Group's history of member-owned exchanges and mergers and acquisition of rivals have led to an unconventionally large board size for a publicly traded company. In 2018, six of its 20 sitting board directors were elected by holders of Class B shares, representing owners of exchange seats, as opposed to that of publicly traded Class A shares. In comparison, the average company in the S&P 500 had no more than 11 board directors.{{cite web|title=Finally, CME honors its investors|date=August 29, 2018 |url=https://www.chicagobusiness.com/joe-cahill-business/finally-cme-honors-its-investors}}

On August 23, 2018, the company offered holders of Class B shares about $10 million to relinquish control of their six board seats.{{cite web|title=CME aims to take another step away from its members-only past|date=August 27, 2018 |url=https://www.chicagobusiness.com/finance-banking/cme-aims-take-another-step-away-its-members-only-past}} The move was subsequently rejected.

CME Group was at the center of the 2010 flash crash, which took place on May 6, 2010. According to a Commodity Futures Trading Commission (CFTC) 2014 report, a significant cause of the event was the use of spoofing algorithms by Navinder Singh Sarao, a British financial trader; just prior to the flash crash, he placed orders for thousands of E-mini S&P 500 stock index futures contracts — which traded on CME Group's Globex platform — and later replaced or modified those orders at least 19,000 times before they were cancelled.{{Citation|last1=Vuorenmaa|first1=Tommi|last2=Wang|first2=Liang|title=An Agent-Based Model of the Flash Crash of May 6, 2010, with Policy Implications|ssrn= 2336772|work=VALO Research and University of Helsinki|date=October 2013}}{{citation|work=Bloomberg News |title="How a Mystery Trader with an Algorithm May Have Caused the Flash Crash"|url=https://www.bloomberg.com/news/articles/2015-04-22/mystery-trader-armed-with-algorithms-rewrites-flash-crash-story |access-date=April 25, 2015 |first1=Silla|last1=Brush |first2=Tom|last2=Schoenberg|first3=Suzi|last3=Ring |date=April 22, 2015}} The event led to the modern day implementation of coordinated cross-market circuit breakers, as the CME's Globex platform halted trading in an automated response to the activity, while the New York Stock Exchange did not.{{cite journal|last1=Subrahmanyam|first1=Avanidhar|date=September 2013|title="Algorithmic trading, the Flash Crash, and coordinated circuit breakers"|journal=Borsa Istanbul Review|volume=13|issue=3|pages=4–9 |doi=10.1016/j.bir.2013.10.003 |doi-access=free}}{{cite web|title=Investor Bulletin: Measures to Address Market Volatility|url=https://www.sec.gov/oiea/investor-alerts-bulletins/investor-alerts-circuitbreakersbulletin}}

• CME Group earned a score of 100% on the Human Rights Campaign's Corporate Equality Index in 2019,{{Cite web |date=2019 |title=Corporate Equality Index 2019 |url=https://assets2.hrc.org/files/assets/resources/CEI-2019-FullReport.pdf |publisher=Human Rights Campaign Foundation |access-date=November 14, 2022}} 2020,{{Cite web |date=2020 |title=Corporate Equality Index 2020 |url=https://assets2.hrc.org/files/assets/resources/CEI-2020.pdf |publisher=Human Rights Campaign Foundation |access-date=November 14, 2022}} 2021,{{Cite web |date=2021 |title=CEI 2021 - Appendix A: Employer Ratings |url=https://hrc-prod-requests.s3-us-west-2.amazonaws.com/cei-appentix-employer-ratings.pdf |publisher=Human Rights Campaign Foundation |access-date=November 14, 2022}} and 2022.{{Cite web |date=2022 |title=CEI 2022 - Appendix A: Employer Ratings |url=https://hrc-prod-requests.s3-us-west-2.amazonaws.com/CEI-2022-Appendices-G.pdf |publisher=Human Rights Campaign Foundation |access-date=November 14, 2022}}
• CME Group was named to the Forbes Blockchain 50 list in 2021 and 2022.{{Cite web |date=February 2, 2021 |title=The Blockchain 50 |url=https://www.forbes.com/sites/michaeldelcastillo/2021/02/02/blockchain-50/?sh=55871090231c |work=Forbes |access-date=November 14, 2022}}{{Cite web |date=February 8, 2022 |title=The Blockchain 50 |url=https://www.forbes.com/sites/michaeldelcastillo/2022/02/08/forbes-blockchain-50-2022/?sh=6e395d8e31c6 |work=Forbes |access-date=November 14, 2022}}{{cite web |url=https://www.cmegroup.com/company/workplace-awards.html |title=CME Group Awards |publisher=CME Group |access-date=November 14, 2022}}
• In 2022, the company won WatersTechnology's IMD & IRD Awards for Best market data in the exchange category.{{cite web|url=https://www.waterstechnology.com/awards-rankings/7947436/imd-ird-awards-2022-best-market-data-exchange-cme-group|title=IMD & IRD Awards 2022: Best market data (exchange)—CME Group}}

{{gallery

|File:Cme building aerial view.jpg|Chicago Mercantile Exchange (CME)

|File:Cbot-close-night.jpg|Chicago Board of Trade (CBOT)

|File:NYMEX building Manhattan.JPG|New York Mercantile Exchange (NYMEX) and COMEX

|File:KCBOT 2 Kansas City Board of Trade.jpg|Kansas City Board of Trade (KCBOT)

}}

• CME Group Tour Championship, the season-ending tournament of the LPGA Tour of women's golf, sponsored by CME Group
• CCP Global

{{reflist}}

• {{Official website}}

{{Finance links

| name = CME Group Inc.

| symbol = CME

| sec_cik = 1156375

| bloomberg = CME:US

| yahoo = CME

| google = CME:NASDAQ

}}

• [https://web.archive.org/web/20150207101248/http://library.uic.edu/collections/manuscripts-and-rare-books/cme-group The CME Group Collections] at University of Illinois at Chicago

{{Illinois Corporations}}

{{World Federation of Exchanges}}

{{NASDAQ Financial-100}}

{{Authority control}}

Category:1898 establishments in Illinois

Category:Companies listed on the Nasdaq

Category:Companies formerly listed on the New York Stock Exchange

Category:Companies based in Chicago

Category:Derivatives (finance)

Category:Electronic trading platforms

Category:Financial services companies established in 2007

Category:Financial services companies based in Illinois

Category:Futures exchanges

Category:Market data