What is the 'Chicago Mercantile Exchange - CME'
The Chicago Mercantile Exchange (CME) is the world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and a small amount on agricultural products.
BREAKING DOWN 'Chicago Mercantile Exchange - CME'
Founded in 1898 as a not-for-profit corporation, the CME was called the Chicago Butter and Egg Board until 1919. In November 2000, CME became the first U.S. financial exchange to demutualize and become a shareholder-owned corporation.
The trading of futures and options on futures provides a way to protect against and profit from price changes in financial instruments and physical commodities.