Futures exchange


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Futures Exchange

An exchange on which futures contracts are traded. A futures contract is traded on a futures exchange; this allows them to be standardized contracts, which reduces uncertainty for investors. Futures exchanges are useful because it allows investors to make either speculative investments or hedges based on the expected future price for a commodity or other underlying asset. Many futures exchanges are also options exchanges.

Futures exchange.

Traditionally, futures contracts and options on those contracts have been bought and sold on a futures exchange, or trading floor, in a defined physical space.

In the United States, for example, there are futures exchanges in Chicago, Kansas City, Minneapolis, and New York.

As electronic trading of these products expands, however, buying and selling doesn't always occur on the floor of an exchange. So the term is also used to describe the activity of trading futures contacts.

References in periodicals archive ?
At the signing ceremony, Chu Juehai, President and CEO, Shanghai International Energy Exchange Limited said, "With the shift in the demand-supply equilibrium of the global energy market, Asia Pacific has become an important spot energy market, prompting the need to develop an influential energy futures exchange and pricing market.
The Shanghai Futures Exchange spent five billion yuan ($821 million) to set up the exchange, which will be able to operate regulated derivative markets for crude oil, natural gas and other petrochemicals, Xinhua reported.
8220;With the market trend of flight to quality, Swiss International Commodities and Futures Exchange is determined and well-positioned to seize these rare opportunities in the ever-evolving marketplaces.
An official of Taiwan Futures Exchange also noted that the institution of block trading conforms to international practice, as such trading is available on most foreign futures markets.
The Jakarta Futures Exchange is an important player in commodities trading in Asia and their rapid expansion and move to electronic trading shows its clear objective for the future.
The Fukuoka Futures Exchange will transfer trading in corn futures and other financial products that have been listed on the bourse to the new bourse, while selling off its real estate holdings.
China Daily quoted a senior research and development manager with the grain-intensive futures exchange in Zhengzhou, capital of Henan Province in central China, as saying the Shanghai exchange would hold back the existing three commodity markets.
Recently, bourse started the Shanghai International Energy Exchange, a dealing platform for energy derivatives in the city's pilot free-trade zone, which will let listing of crude-oil futures, satted by Yang Maijun, the head of the futures exchange.
Swiss International Commodities and Futures Exchange now allows its traders to undertake trade multi-asset under single trading platform.
This is the first time that a mainland (Chinese) futures exchange explores substantive cooperation relationship with exchanges outside mainland (China),'' said Jiang Yang, chief executive officer of SHFE.
Today, Compassoft's worldwide customer base includes each of the Big Four accounting firms, ABN AMRO, Bruce Power, CitiGroup, HP, Lloyds TSB, Prudential, Sydney Futures Exchange, Tulane University, Tyson and Venetian Casinos.
Singapore Exchange declared that it has inked Memorandum of Understanding (MoU) with Shanghai Futures Exchange to cooperate for the development of the commodity derivatives markets in both China and Singapore.