The major derivatives exchanges
The Eurex Exchange, the Chicago Mercantile Exchange and the London International Financial Futures and Options Exchange are the three largest exchanges where you can invest in derivatives . Below we discuss these big three:
The Eurex Exchange or Eurex.
The Eurex is a large derivatives exchange of German origin and is owned by the Deutsche Börse. This exchange was founded in 1989 and emerged from a merger of the Deutsche Terminbörse and the Swiss Options and Financial Futures Exchange. On the Eurex Exchange you cannot invest in shares, but only trade in two derivatives, namely options and futures . The options and futures on the Euro STOXX 50 index, the German Bund future and DAX index options are the derivatives that are most often traded. For example, you can invest in options and futures on various shares, interest rate derivatives, currencies, bonds and commodities. In addition, there is also the possibility of taking futures on the weather, the so-called hurricane futures or inflation futures.
De Chicago Mercantile Exchange (CME)
The CME is a derivatives exchange founded in 1898 in the United States as the ‘Chicago Butter and Egg Board’. This exchange got its current name in 1919 after a reorganization. In the year 1972, futures were introduced for 7 foreign currencies. These were the first futures. Furthermore, in 2007, after a merger with the Chicago Board of Trade, the CME Group was formed. In 2008, there was another merger with the New York Mercantile Exchange.
De London International Financial Futures and Options Exchange (LIFFE)
LIFFE is a futures exchange based in London. After a number of takeovers, LIFFE is now part of the Intercontinental Exchange group. To begin with , LIFFE was acquired by Euronext in 2002. This was then acquired by NYSE, the New York Stock Exchange, in 2007. NYSE Euronext was created to acquire ownership of LIFFE. In 2013, NYSE Euronext was acquired by the Intercontinental Exchange for the same reason. Euronext launched another IPO (Initial Public Offering) in 2014. LIFFE, on the other hand, remained part of the ICE NYSE group and continued under the name ICE Futures Europe.
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