- published: 22 Sep 2013
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Coordinates: 41°52′40″N 87°37′56″W / 41.877821°N 87.632285°W / 41.877821; -87.632285
The Chicago Board of Trade (CBOT), established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading. Volumes at the exchange in 2003 were a record breaking 454 million contracts. On 12 July 2007, the CBOT merged with the Chicago Mercantile Exchange (CME) to form the CME Group, a CME/Chicago Board of Trade Company. CBOT and three other exchanges (CME, NYMEX, and COMEX) now operate as designated contract markets (DCM) of the CME Group.
The concerns of U.S. merchants to ensure that there were buyers and sellers for commodities have resulted into forward contracts to sell and buy commodities. Still, credit risk remained a serious problem. The CBOT took shape to provide a centralized location, where buyers and sellers can meet to negotiate and formalize forward contracts.
In 1864, the CBOT listed the first ever standardized "exchange traded" forward contracts, which were called futures contracts. In 1919, the Chicago Butter and Egg Board, a spin-off of the CBOT, was reorganized to enable member traders to allow future trading, and its name was changed to Chicago Mercantile Exchange (CME).
Chicago (i/ʃɪˈkɑːɡoʊ/ or /ʃɪˈkɔːɡoʊ/) is the largest city in the US state of Illinois and the third most populous city in the United States after New York City and Los Angeles. The city has around 2.7 million residents. Its metropolitan area, sometimes called "Chicagoland", is the third largest in the United States, with an estimated 9.8 million people. Chicago is the county seat of Cook County, though a small portion also extends into DuPage County.
Chicago was incorporated as a city in 1837, near a portage between the Great Lakes and the Mississippi River watershed. Today, Chicago is listed as an alpha+ global city by the Globalization and World Cities Research Network, and ranks seventh in the world on the 2012 Global Cities Index. The city retains its status as an international hub for finance, industry, telecommunications and infrastructure, with O'Hare International Airport being the second busiest airport in the world in terms of traffic movements. In 2008[update], the city hosted 45.6 million domestic and overseas visitors. Among metropolitan areas, Chicago has the 4th largest Gross Domestic Product (GDP) in the world, ranking just behind Tokyo, New York City, and Los Angeles. Chicago is one of the most important Worldwide Centers of Commerce and trade.
The Board of Trade, originally the Lords of Trade or Lords of Trade and Plantations is a committee of the Privy Council of the United Kingdom, first established as a temporary committee of inquiry in the 17th century that evolved gradually into a government department with a diverse range of functions. This department was merged with the Ministry of Technology in 1970 to form the Department of Trade and Industry (since 2009, the Department for Business, Innovation and Skills), headed by a Secretary of State for Trade and Industry (now Secretary of State for Business, Innovation and Skills), who is also President of the Board of Trade. The full Board has met only once since the mid-19th century, during commemorations of the bicentenary of the Board in 1986.
In 1621, King James I directed the Privy Council to establish a temporary committee to investigate the causes of a decline in trade and consequent financial difficulties. The Board's formal title remains The Lords of the Committee of Privy Council appointed for the consideration of all matters relating to Trade and Foreign Plantations.
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