In November 2000, the Chicago Mercantile Exchange (CME), established in 1898 as a membership not-for-profit organisation, became the first US financial exchange to convert its structure to that of a for-profit corporation. In addition to changing the relationship between the CME and its former members, this move, watched closely by exchanges in the US and other countries, may have important implications for the financial services industry and regulation in the US.
The CME is one of the largest exchanges in the world, providing a marketplace where participants can engage in the trading of futures contracts and options on futures contracts for purposes both of hedging risks associated with business, or speculating on changes in the price or value of the underlying products, such as cattle or stock indices.
