What is Derivatives exchange?
A Derivatives Exchange is where derivatives are traded, which are primarily Options, Futures and Options on Futures. Most active options products include equity derivatives ( stock options), options on indexes, options on volatility, options on ETFs etc. Most active futures products include Euro Dollar futures, S&P futures, e-mini S&P futures, Treasury futures, Commodity futures etc. Derivative contracts are offered on a wide variety of asset classes, and derivatives volume has been growing at a rapid pace. Chicago Mercantile Exchange(CME), after merging with cross-town rival Chicago Board of Trade(CBOT), became the world’s largest futures exchange. Overall, there is a lot of consolidation happening in the exchange space. For example, NYSE, which is primarily a stock exchange, has entered into Options trading(with acquisition of Archipelago Exchange) and into Futures trading with the acquisition of Eurex. Most of these exchanges embraced electronic trading and there is very little of f
