CME Group, from the Chicago Stock Exchange, wants to go beyond commodities as an investment

by Andrea
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Known worldwide as one of the main trading centers for agricultural commodities, the CME Groupcontroller of the Chicago Stock Exchange, seeks to show Brazilian investors that it offers much more than derivatives linked to soybeans, corn or wheat.

Operating on several fronts of financial products, which include currencies, stock indices, US Treasury bonds, energy, precious metals and even climate indices, the institution wants to reinforce its presence in the national market and highlight the opportunities available for investment diversification.

The CME Group is formed by the merger between several exchanges, such as the Chicago Mercantile Exchange (CME); the Chicago Board of Trade (CBOT); the New York Mercantile Exchange (NYMEX); and the Commodity Exchange (COMEX).

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Education and expansion in the Brazilian market

“Over the last 3 to 5 years, the Brazilian market has seen great growth in participation on the stock exchange”, says Paula Attie, responsible for the CME Group in Brazil, which has had an office in the country for 10 years.

According to her, both institutional investors and individuals have shown interest in exploring the possibilities of international markets.

“Traders have tried to educate themselves and understand the possibilities of accessing international markets.”

— Paula Attie, director CME Group Brazil

Challenges yes CME

Despite this growth, Paula recognizes that, compared to the United States, Europe and Asia, the Latin American presence is still small.

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However, it is betting on increasing this participation, as local investors open up their possibilities to those existing in global markets – from how to access exchanges abroad to trading strategies and specifications of the various asset classes available.

“It has been a year of high interest rates in Brazil, and investors have the opportunity to look for investment alternatives. Futures and options offered on the Chicago Stock Exchange in various asset classes allow them to access a highly liquid market”, he highlights.

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“Derivatives are sophisticated products, and we believe that education is crucial to understanding them”, says Paula. “Our role here is to ensure that information about the market there is at the fingertips of investors”, he highlights.

Far beyond commodities

When people talk about the Chicago Stock Exchange, many immediately think of the soybean, corn and wheat markets. However, the asset classes traded go much further.

“The asset classes traded on the Chicago Stock Exchange range from US Treasury bonds (Treasuries), to the stock index futures market, such as the S&P 500, Nasdaq and Russell, as well as currency and cryptocurrency futures and energy commodities futures such as oil and natural gas, and metals such as gold, copper and platinum”, explains Paula.

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With the dissemination of more information to market agents in Brazil, the expectation is that the Chicago Stock Exchange will be able to disseminate its entire range of assets offered in addition to commodities.

“In the past, the problem was sending money abroad, but that has changed a lot with global transfers (through accounts), which are much less complicated. This operational part is no longer a problem. The question today is knowledge about what we can offer.”

Futures exchange trajectory

Founded in 1848 as the world’s first futures exchange, the CBOT (Chicago Board of Trade) ushered in a series of innovations that shaped the global financial market.

In 1865, the CBOT formalized grain trading with the development of standardized futures contracts, also establishing the first futures clearing operation by requiring guarantee margins from buyers and sellers.

Chicago Board of Trade. (Credit: Wikimedia Commons/Ken Lund)

Throughout the 20th century, the exchange expanded its operations. In 1972, CME launched the first financial futures contracts, offering possibilities in seven foreign currencies.

In the 1980s, it introduced cash-settled futures contracts and stock index futures such as the S&P 500.

Starting in the 2000s, CME Group established itself as a world leader in derivatives, acquiring NYMEX and expanding its product range to include energy and metals.

Today, CME Group offers products across all major asset classes, enabling investors to manage risk and find opportunities efficiently.

With specialized and liquid markets, the institution says it seeks to innovate and expand its global presence, meeting the needs of a constantly evolving financial market.

CME Group, from the Chicago Stock Exchange, wants to go beyond commodities as an investment

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