The Chicago Board of Trade (CBOT) is the oldest futures and options exchange in the world, with over 3,600 members trading more than 50 different contracts. The CBOT building, designed by Holabird and Route, is a Chicago landmark and features a sculpture of Ceres, the Roman goddess of plants. The CBOT has evolved from trading only agricultural products to offering futures contracts in gold, silver, soybeans, and ethanol. The primary objective of the CBOT is to provide liquid and transparent contract markets for risk management, price discovery, and investment purposes.
The Chicago Board of Trade (CBOT) was established in 1948. There are 3,600 CBOT members who trade more than 50 different options and futures contracts through open protests and electronic trading. The CBOT is the oldest futures and options exchange in the world.
The CBOT has been operating out of 141 West Jackson Boulevard, Chicago since 1930. Architects Holabird and Route designed the building. Standing 605 feet (184.4 meters) tall, it is art deco in design and incorporates sculptural works by Alvin Meyer. At the top of the building is a sculpture of Ceres, the Roman goddess of plants. This refers to CBOT’s heritage as a market for agricultural products.
The Ceres sculpture is faceless, as Meyer thought the building would never be taller and therefore no one would see the face. The building was designated a Chicago landmark in 1977. Numerous other skyscrapers in Chicago’s Circle District now surround the building.
For many years, the primary method of trading was by open auction. This required traders to meet face to face at 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 electronic commerce has become more frequent and the exchange has improved its electronic systems several times.
The primary objective of the CBOT is to trade futures and options on futures, either through electronic means or through 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 around the world to interpret news, economic information, and other data. Speculators use this information to make price decisions and invest if the price seems financially viable.
In its early days, the CBOT only traded agricultural products 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 contacts. The exchange’s newest products include South American soybean futures and ethanol futures in response to changing trends in the global agricultural market.
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