A futures exchange is a financial exchange where standardized futures contracts are traded. Many developed from agricultural and commodity markets, but modern exchanges also list financial derivatives. Not all derivatives trade on exchanges; over-the-counter markets also exist.
Organized grain trading in nineteenth-century Chicago helped develop standardized futures markets from forward transactions. A futures contract is not simply any forward traded in a venue: exchange rules, standardization, clearing and margin are important distinctions.
Financial futures expanded beyond physical commodities in the 1970s; CME introduced currency futures in 1972. Interest-rate and stock-index products followed, and options on futures are a related but separate product type. Exchange product ranges have continued to evolve.
Major Global Exchanges
Global futures exchanges operate across developed and emerging markets. The old directory below has been updated to group current official resources; product names, exchange ownership and available contracts should be checked at the source.
| Official resource | What to check |
|---|---|
| CME Group: CME, CBOT, NYMEX and COMEX | Product exchange, specifications, clearing and calendars |
| ICE | Energy, agricultural and financial contract listings |
| London Metal Exchange | Metals contract and prompt-date conventions |
| Euronext | Current European derivatives listings |
| JPX: Osaka Exchange and TOCOM | Product venue after commodity transfers; current specifications |
Margin Requirements
Futures participants post performance-bond margin to support their obligations. Exchange and broker requirements vary with the product, volatility, account and positions. Mark-to-market losses can require additional funding or liquidation. Margin is not a guarantee against losses or a cap on them.
