Sunday, November 24, 2013

CME Chicago mercantile exchange

The Chicago Mercantile Group Exchange  CMEGroup  constantly monitors this added risk due to market volatility across all Futures markets that trade on their exchange. With their acquisitions of the Chicago Board of Trade, New York Mercantile and Comex exchanges, they now have better than 85% of the world commodity Futures traded on their electronic Globex platform, or an open outcry trading pit, at one of the three exchanges. For over 100 years, the CME has cleared trades and been a counterparty to every transaction on the exchange every day for this period. For the record, in 2010, the CMEGroup cleared 2.4 billion contracts. Being a counterparty means that for every transaction made, the exchange will guarantee each buy or sell side transaction. If, for some reason, the party on the other side of your trade defaults on their obligation to honor their losses, the CMEGroup will make that transaction good by paying the loss to the winning party of the transaction. During this 100 plus year period, there has never been a failure of a clearing firm member resulting in losses to a customer account.
Chicago mercantile exchange