Futures Exchange

RECENT NEWS
Mondo Visione  Mar 11  Comment 
In observance of the Children's Day, TAIFEX will be closed for trading on April 4 (Friday).
The Hindu Business Line  Feb 25  Comment 
The entire agricultural value chain, starting from the farmer to the consumer, will stand to benefit
Commodity Online  Feb 22  Comment 
The Market's Choice Awards span more than 20 categories across exchanges, sell-side desks, institutional buy-side investors, hedge funds, and technology providers. The methodology in selecting nominees and winners focused on the most important...
Mondo Visione  Jan 22  Comment 
Click here to download TAIFEX's January newsletter.
Mondo Visione  Dec 25  Comment 
Click here to download TAIFEX's December newsletter.
The Hindu Business Line  Dec 17  Comment 
The futures exchange protects farmers against adverse movement in the prices of their produce, said Davey Cherimulla, Assistant Manager of NCDEX (National Commodity and Derivatives...
Mondo Visione  Nov 7  Comment 
The Thailand Futures Exchange PCL (TFEX) announces that its derivatives trading system is ready to operate as usual today. The exchange has monitored the system closely in order to ensure that trading will run without interruption.     
Mondo Visione  Nov 6  Comment 
The Thailand Futures Exchange PCL (TFEX) announces that it will resume trading in the afternoon session after trading system has been solved and brokers are able to re-connect with TFEX. Therefore, the afternoon-session trading will operate as...
Channel News Asia  Oct 21  Comment 
The Singapore Exchange is partnering the Shanghai Futures Exchange to develop commodity derivatives for both markets.
The Hindu Business Line  Sep 26  Comment 
Trading almost grounded after launch of contracts with new specifications




 

See also: List of Futures Exchanges

A futures exchange is an institution, organization, or association that serves as a market for the trading of futures contracts. In addition to the facilitation of trading contracts, futures exchanges also serve as a clearing house for the transfer and settlement of the physical commodities underlying most futures contracts.

It should be noted that while the majority of contracts traded on a futures exchange are commodities, futures exchanges also deal in other types of contracts, usually relying on financial instruments.

Technology has been one key factor driving the industry, with almost all the established exchanges adopting electronic trading in some form or another while new generation exchange platforms are fully electronic.

One example is Singapore's pan-Asian multi-product commodity and currency derivatives exchange - the Singapore Mercantile Exchange (SMX) - which offers a comprehensive platform for trading a diversified basket of commodities including futures and options contracts on precious metals, base metals, agriculture commodities, energy, currencies and indices.

SMX offers market participants the benefits of market transparency, time zone convenience, price discovery and benchmarking, price risk management and multiple connectivity options. Counter-party clearing and settlement risk is effectively managed through its clearing house, the Singapore Mercantile Exchange Clearing Corporation (SMXCC).

Commodities Futures

The vast majority of futures contracts traded on a futures exchange are commodities futures contracts. Raw materials, such as corn, sugar and crude oil, for example, are representative of the items traded as commodities on a futures exchange. Producers of raw materials will generally sell contracts to deliver raw materials at a future point in time to a consumer that will use the raw materials to provide goods or services.

This type of trading allows both parties involved to establish the price at which they will do business. In this way a farmer whose crops are still in the field can establish the price for which those crops will be sold.

Futures Exchanges on Wikinvest

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