DEFINITION of 'Changer'

Changer is the name given to a clearing member of a stock or commodities exchange who is willing to assume the opposite position of a futures or options contract within a larger alternative exchange, of which it also is a clearing member. As such, changers provide liquidity to a market.

BREAKING DOWN 'Changer'

A changer most commonly refers to a clearing member of the Chicago Mercantile Exchange (CME), who take the opposite commodities futures positions on larger alternative exchanges. Changers act as buyers to clearing member sellers and as sellers to clearing member buyers. As changers must bear the risks associated with entering into a contrary position on a transaction, they charge a clearing fee for their services.

Clearing members are highly capitalized, closely monitored, and carefully selected companies that stand behind all trades made through CME Group Exchanges. Clearing members assume full financial and performance responsibility for all transactions executed through them and cleared by CME Clearing.

RELATED TERMS
  1. Chicago Mercantile Exchange - CME

    The Chicago Mercantile Exchange is a futures exchange which trades ...
  2. Free and Clear

    When an asset or property is owned completely without debt or ...
  3. Clearing Price

    Clearing price is the equilibrium monetary value of a traded ...
  4. Pay/Collect

    An abbreviated reference to the payment or collection of funds ...
  5. International Monetary Market (IMM)

    The International Money Market is a division of the Chicago Mercantile ...
  6. Commodities Exchange

    A commodities exchange is an legal entity that determines and ...
Related Articles
  1. Trading

    What Does a Clearing House Do?

    A clearing house is a third-party agency or separate entity that acts as a go-between for buyers and sellers in financial markets.
  2. Investing

    Who Owns The Stock Exchanges?

    As M&A heats up among the exchanges, here's how the market currently looks.
  3. Insights

    Why Are Safe Haven Assets Disappearing?

    The push for safer trading is sharply reducing the supply of safe haven assets, experts say.
  4. Trading

    Principal trading and agency trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on to find out.
  5. Investing

    The Ins And Outs of Seller-Financed Real Estate Deals

    There's more than one way to buy or sell a house. Seller financing presents yet another unique option.
  6. Trading

    An Introduction To Trading Forex Futures

    We explain what forex futures are, where they are traded, and the tools you need to successfully trade these derivatives.
  7. Trading

    Advantages Of Trading Futures Over Stocks (APPL)

    We look at the top eight advantages of trading futures over stocks.
  8. Insurance

    Trends Driving Managed Care M&A

    The uncertainty introduced by legislation has many managed care companies worried about potential financial losses. Companies are turning to M&A to offset their fears.
RELATED FAQS
  1. What types of futures contracts are typically sold on an exchange?

    Explore the wide variety of available futures contracts traded on exchanges, which range from agricultural commodities to ... Read Answer >>
  2. What are all of the securities markets in the U.S.A?

    Securities can be bought and sold via a number of exchanges in the US. Learn about the major and somewhat lesser-known U.S. ... Read Answer >>
  3. What is the difference between options and futures?

    An option gives a buyer the right, but not the obligation to buy or sell an asset, A futures contract obligates the buyer ... Read Answer >>
  4. How do S&P 500 futures work?

    Learn about the mechanics of S&P 500 futures contracts, a type of stock index future introduced by the Chicago Mercantile ... Read Answer >>
Trading Center