What is a Contract Market?
Contract markets are exchanges that are empowered under the laws and regulations of a jurisdiction to engage in the trading of futures and futures options. Sometimes referred to as a self regulatory organization or SRO, the contract market functions by dealing in securities and commodities, including futures trading, that are traded in accordance with the rules of conformity associated with the exchange, as well as the broader laws and regulations of the governing nation where the exchange is based. In some instances, a contract market is known as a designated exchange. This is the case when the contract market is focused on a particular type of trading activity or commodity. One good example of a designated exchange is the Chicago Mercantile Exchange. At times, the term “contract market” may not refer to a trading exchange, but to an actual commodity that is traded on an exchange. This type of usage is particularly common when referring to commodities such as soybeans, pork bellies, o
Contract markets are exchanges that are empowered under the laws and regulations of a jurisdiction to engage in the trading of futures and futures options. Sometimes referred to as a self regulatory organization or SRO, the contract market functions by dealing in securities and commodities, including futures trading, that are traded in accordance with the rules of conformity associated with the exchange, as well as the broader laws and regulations of the governing nation where the exchange is based. In some instances, a contract market is known as a designated exchange. This is the case when the contract market is focused on a particular type of trading activity or commodity. One good example of a designated exchange is the Chicago Mercantile Exchange. At times, the term “contract market†may not refer to a trading exchange, but to an actual commodity that is traded on an exchange. This type of usage is particularly common when referring to commodities such as soybeans, pork bellies
