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| Formerly | Chicago Mercantile Exchange Holdings Inc. |
|---|---|
| Company type | Public |
| Industry | Financial Services |
| Founded | Oldest exchange 1848; 178 years ago (1848); Merger 2007; 19 years ago (2007) |
| Headquarters | Chicago,Illinois, U.S. |
Key people | Terrence A. Duffy (chairman &CEO) Lynne Fitzpatrick (CFO)[1] |
| Revenue |  US$6.13 billion (2024) |
| US$3.93 billion (2024) | |
| US$3.48 billion (2024) | |
| Total assets | US$137.4 billion (2024) |
| Total equity |  US$26.49 billion (2024) |
Number of employees | 3,760 (2024) |
| Subsidiaries | |
| Website | cmegroup.com |
| Footnotes / references [2] | |
CME Group Inc. (formerlyChicago Mercantile Exchange Holdings Inc.) is an American financial services company based inChicago, Illinois. It operatesfinancial derivatives exchanges, including theChicago Mercantile Exchange (CME), theChicago Board of Trade (CBOT), theNew York Mercantile Exchange (NYMEX), and the Commodity Exchange (COMEX). The company owns 27% ofS&P Dow Jones Indices.[2][3][4][5] It is the world's largest operator offinancial derivatives exchanges. Its exchanges are platforms for trading in agricultural products,currencies, energy,interest rates, metals,futures contracts,options,stock indexes, andcryptocurrencies futures.
Headquartered in Chicago,[6][7] the company maintains offices in New York, Houston, and Washington D.C., in the United States, as well as abroad in Bangalore, India, Beijing, China, Belfast, Ireland, Calgary, Canada, Hong Kong, London, England, Seoul, Korea, Singapore, and Tokyo, Japan.[8]
TheChicago Mercantile Exchange (CME), was founded in 1898 as anonprofit corporation.[2] In 1919, it established itsclearing house.[2] In 2000, CMEdemutualized (became a joint stock company).[2] In 2002, CME Group, the parent company of CME, became apublic company via aninitial public offering.[2]
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On July 12, 2007, CME Group completed a merger with the CME's historical rival, the holding company for theChicago Board of Trade, founded in 1848, in an $8 billion deal that created the world's largest financial market.[9][10][11] The company then launched as CME Group Incorporated, a CME/Chicago Board of Trade Company.[12][13]
In 2012, Phupinder Gill, then CME Group's president and Chief Operating Officer, became the company's Chief Executive Officer (CEO).
In November 2016, Gill retired from his role andTerrence A. Duffy, then executive chairman and president of the company, took on an expanded role as its CEO.[14]
In 2021, the firm struck a partnership withGoogle to build its cloud strategy, which saw the technology giant investing $1 billion in CME Group.[15]
In 2022, CME Group futures and options reached a record average daily volume of 23.3 million contracts.[16]
On August 22, 2008, CME Group acquiredNew 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.[17][18][19][20][21]
On February 10, 2010, CME Group agreed to purchase 90% of Dow Jones & Company's financial-indexes business, including theDow Jones Industrial Average.[22][23] CME Group and Dow Jones & Company subsequently contributed the Dow Jones Indexes to the formation ofS&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.[24][25] 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%.[26]
On December 3, 2012, CME Group acquired theKansas City Board of Trade, the dominant venue for the sale of hard redwinter wheat, for $126 million in cash.[27][28]
On March 15, 2016, the firm announced the sale of its suburban Chicago data center inAurora, Illinois toCyrusOne for $130 million, in a leaseback transaction.[29]
On November 2, 2018, CME Group acquired the London-basedNEX Group for $5.5 billion.[30][31]
CME Group operates a globalderivatives marketplace that allows institutions and individuals to trade futures and options based on interest rates, equity indexes, foreign exchange, energy, metals, and agricultural commodities.[32][6][7] The company runs an electronic trading platform,CME Globex, which allows customers in approximately 150 countries to trade futures and options contracts.[33][34][35]
The company also operates two cash market businesses: BrokerTec, which facilitates dealer-to-dealer trading for fixed-income markets,[36][37] and EBS, which providesforeign exchange spot trading.[38]
In addition, CME Group operates CME Clearing, which serves as a counterparty to every cleared transaction, including both listed and over the counter (OTC) derivatives, within the company's marketplace. CME Group is a member ofCCP Global, a trade group of central counterparty clearinghouses from around the globe.[39][40]
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 theS&P 500 had no more than 11 board directors.[41]
On August 23, 2018, the company offered holders of Class B shares about $10 million to relinquish control of their six board seats.[42] The move was subsequently rejected.
CME Group was at the center of the2010 flash crash, which took place on May 6, 2010. According to aCommodity Futures Trading Commission (CFTC) 2014 report, a significant cause of the event was the use ofspoofing algorithms by Navinder Singh Sarao, aBritish financial trader; just prior to the flash crash, he placed orders for thousands ofE-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.[43][44] The event led to the modern day implementation of coordinated cross-marketcircuit breakers, as the CME's Globex platform halted trading in an automated response to the activity, while theNew York Stock Exchange did not.[45][46]
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 ...
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.
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.
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