# Chicago Mercantile Exchange

> financial and commodity derivative exchange located in Chicago, Illinois, United States

**Wikidata**: [Q1071967](https://www.wikidata.org/wiki/Q1071967)  
**Wikipedia**: [English](https://en.wikipedia.org/wiki/Chicago_Mercantile_Exchange)  
**Source**: https://4ort.xyz/entity/chicago-mercantile-exchange

## Summary
The Chicago Mercantile Exchange (CME) is a financial and commodity derivative exchange located in Chicago, Illinois, United States. Founded in 1898, it operates as a central financial exchange where people can trade standardized futures contracts. It is owned and operated by CME Group, a major finance industry company, and is also known by aliases such as the Chicago Merc, the Merc, and XCME.

## Key Facts
- **Inception:** Founded in 1898.
- **Location:** Chicago, Illinois, United States.
- **Type:** Financial and commodity derivative exchange; futures exchange; service; business.
- **Owner/Operator:** CME Group (a futures company and one of the largest options and futures exchanges, founded July 12, 2007).
- **Subsidiary/Sister Exchange:** New York Mercantile Exchange (NYMEX), a commodity and futures exchange located in New York City, founded in 1872.
- **Aliases:** CME, the Chicago Merc, the Merc, XCME, Chicago Mercantile Exchange Inc. (Chicago, IL).
- **Website:** https://www.cme.com
- **Primary Financial Instrument:** Futures contracts (standardized legal agreements to buy or sell something at a predetermined price at a specified time in the future).

## FAQs
**What does the Chicago Mercantile Exchange do?**
It serves as a central financial exchange where participants can trade standardized futures contracts and other financial and commodity derivatives. It directly satisfies economic wants as a service without producing a lasting asset.

**Who owns and operates the Chicago Mercantile Exchange?**
It is owned and operated by CME Group, a major finance industry company established on July 12, 2007. CME Group is headquartered in Chicago and London, employs 2,300 people, and operates in both the United States and the United Kingdom.

**What other exchanges are related to the Chicago Mercantile Exchange?**
The New York Mercantile Exchange (NYMEX) is a related commodity and futures exchange. Founded in 1872, NYMEX is located in New York City, New York, and operates under the same corporate umbrella.

## Why It Matters
The Chicago Mercantile Exchange plays a critical role in the global finance industry by providing a centralized, regulated marketplace for trading standardized futures contracts. This infrastructure allows producers, consumers, and investors to manage price risk and discover forward prices for commodities and financial instruments. As a foundational component of CME Group—one of the largest options and futures exchanges in the world—CME anchors a vast derivative ecosystem that facilitates economic stability and liquidity in both the United States and international markets.

## Notable For
- Being a premier central financial exchange for trading standardized futures contracts.
- Operating as a core component of CME Group, which is recognized as one of the largest options and futures exchanges globally.
- Maintaining a long-standing presence in the United States financial sector since its inception in 1898.
- Serving as a primary hub for commodity and financial derivative trading in Chicago, a major global financial center.

## Body

### Location and Origin
The Chicago Mercantile Exchange is situated in Chicago, the largest city in the state of Illinois and the county seat of Cook County. The exchange operates within the United States, a country that declared its independence on July 4, 1776, and had its independence recognized via the Treaty of Paris on May 12, 1784. The exchange itself was founded in 1898 and maintains its primary web presence at https://www.cme.com.

### Corporate Structure and Ownership
The exchange is owned and operated by CME Group. CME Group is a prominent entity in the finance industry, officially inceptioned on July 12, 2007. The company maintains headquarters in Chicago and London, and it operates within the jurisdictions of both the United States and the United Kingdom. CME Group employs 2,300 people. In addition to the Chicago Mercantile Exchange, CME Group also encompasses the New York Mercantile Exchange (NYMEX). NYMEX is a commodity and futures exchange founded in 1872, headquartered in New York City (coordinates: lat 40.714444444444, lon -74.016944444444).

### Classification and Economic Function
The Chicago Mercantile Exchange is classified fundamentally as a business—an organization undertaking commercial, industrial, or professional activity. More specifically, it functions as a futures exchange, which is a central financial exchange dedicated to the trading of standardized futures contracts. Economically, it operates as a service, meaning it provides an economic product that directly satisfies wants without producing a lasting asset. 

### Financial Instruments
The core product traded on the exchange is the futures contract. A futures contract is a standardized legal agreement to buy or sell an asset—usually a commodity or financial instrument—at a predetermined "forward price" at a specified "delivery date" in the future. By providing a centralized platform for these contracts, the exchange facilitates price discovery and risk management for market participants.

## References

1. Market Identifier Code
2. Virtual International Authority File
3. [Source](https://help.yahoo.com/kb/SLN2310.html)
4. Freebase Data Dumps. 2013
5. GeoNames
6. Quora
7. National Library of Israel Names and Subjects Authority File