commodity exchange

commodity exchange
an exchange for the buying and selling of futures contracts on commodities, as butter, coffee, sugar, and grains.
[1930-35]

* * *

Organized market for the purchase and sale of enforceable contracts to deliver a commodity (such as wheat, gold, or cotton) or a financial instrument (such as U.S. treasury bills) at some future date.

Such contracts are known as futures and are bought and sold in a competitive auction process on commodity exchanges (also called futures markets). The largest futures and futures-options exchange is the Chicago Board of Trade.

* * *

also called  Futures Market, or Futures Exchange,  

      organized market for the purchase and sale of enforceable contracts to deliver a commodity such as wheat, gold, or cotton or a financial instrument such as U.S. Treasury bills or Eurodollars at some future date. Such contracts are known as futures (q.v.) and are bought and sold by means of a competitive auction process on the commodity exchange. The financial instruments known as options and indexes are also traded on commodity exchanges. The largest commodity exchange is the Chicago Board of Trade. The seller of a futures contract on a commodity exchange does not normally intend to deliver the actual commodity, nor does the buyer intend to accept delivery; each will, at some time prior to the date of delivery specified in the contract, cancel out his obligation by an offsetting purchase or sale. The parties merely wish to engage in the assumption or delegation of the risk involved in a change in price.

      Commodity exchanges are thus ancillary to the markets in which commodities are actually bought and sold; commodity exchanges in effect provide insurance against the risk of price changes by transferring that risk to speculators who are willing to assume it. Commodity exchanges also provide a basis for the determination of prices at which commodities are actually traded.

* * *


Universalium. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Commodity exchange — may refer to: Commodities exchange, any exchange where various commodities and derivatives products are traded. Commodity markets, for the markets trading on commodities in general. See also Commodity Exchange This disambiguation page lists… …   Wikipedia

  • commodity exchange — An exchange that lists designated futures contracts for the trading of various types of derivative products and allows use of its facilities by traders. Must comply with rules set forth by the Commodity Futures Trading Commission ( CFTC). Chicago …   Financial and business terms

  • commodity exchange — noun an exchange for buying and selling commodities for future delivery • Syn: ↑commodities exchange, ↑commodities market • Hypernyms: ↑exchange • Hyponyms: ↑futures exchange, ↑futures market, ↑ …   Useful english dictionary

  • Commodity Exchange Bratislava — Commodity Exchange Bratislava, JSC Type Joint stock company Founded December 8, 1992 Headquarters Bratislava, Slovakia …   Wikipedia

  • Commodity Exchange Act — (ch. 545, 49 Stat. 1491, enacted June 15, 1936) is a federal act passed in 1936 by the U.S. Government (replacing the Grain Futures Act of 1922). The Act provides federal regulation of all commodities and futures trading activities and… …   Wikipedia

  • Commodity Exchange Act — (CEA) USA The federal statute regulating the US market for trading in commodity futures. The CEA gives the CFTC authority to regulate commodity pool operators, commodity trading advisers and commodities exchanges. Related terms …   Law dictionary

  • Commodity Exchange Inc. — Commodity Exchange Inc.   [kə mɔdɪtɪ ɪks tʃeɪndʒ ɪn kɔːpəreɪtɪd], Abkürzung COMEX, weltweit führende Warenbörse für Gold, Silber und Kupfer, Handel mit Futures und Optionen auf Metalle und Kerosin; ansässig im World Trade Center, New York …   Universal-Lexikon

  • Commodity Exchange Authority — The Commodity Exchange Authority was a former regulatory agency of USDA. It was established to administer the Commodity Exchange Act of 1936; it was the predecessor to the Commodity Futures Trading Commission (CFTC). References  This article …   Wikipedia

  • commodity exchange — commod′ity exchange n. bus an exchange for the buying and selling of futures contracts on commodities • Etymology: 1930–35 …   From formal English to slang

  • commodity exchange — See commodity market …   Big dictionary of business and management

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”