CBOT is the world’s oldest futures and options exchange, founded in 1948. It operates from an art deco building in Chicago and trades over 50 different options and futures contracts through open protest and e-trading. The exchange’s main objective is to provide liquid and transparent contract markets for risk management, price discovery, and investment purposes. It has progressed from trading only agricultural commodities to launching new trading categories such as gold and silver futures and South American soybean futures.
The Chicago Board of Trade (CBOT) was founded in 1948. There are 3,600 CBOT members who trade more than 50 different options and futures contracts through open protest and e-trading. The CBOT is the world’s oldest futures and options exchange.
The CBOT operates from 141 to 1930 West Jackson Boulevard, Chicago. Architects Holabird and Route designed the building. Standing 184.4 meters (605 feet) tall, it is art deco in style and incorporates sculptural work by Alvin Meyer. At the top of the building is a sculpture of Ceres, the Roman goddess of plants. This is in reference to CBOT’s heritage as an agricultural commodity market.
The Ceres sculpture is faceless, as Meyer thought the building would never be exceeded in height and no one would therefore see the face. The building was designated a Chicago Landmark in 1977. Numerous other skyscrapers in Chicago’s Ring District now surround the building.
For many years, the primary method of trading has been the open auction. This required traders to meet face to face in the pit to buy and sell futures contracts. In 1994, CBOT launched its first electronic commerce system, implemented to meet the needs of the growing global economy. The use of e-trading has become more widespread and the exchange has updated its electronic systems several times.
The main objective of the CBOT is to trade futures and options on futures, either through electronic means or auctions. It provides liquid and transparent contract markets for its shareholders, members and clients, who use the CBOT for risk management, price discovery and investment purposes. Futures markets allow speculators from around the world to interpret news, economic information and other data. Speculators use this information to make price decisions and invest if the price looks financially viable.
In the beginning, the CBOT traded only in agricultural commodities such as wheat, oats, corn and soybeans. It has progressed significantly since then. In 2001, the CBOT launched a new trading category of 100% gold and silver futures leads. The exchange’s most recent products include South American soybean futures and ethanol futures in response to changing trends in the global agricultural market.
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