By a wide margin, the single greatest benefit of futures is the diversity of alternatives. Products facing a multitude of asset classes stand at the ready to help market participants achieve a variety of goals. When futures trading US markets, there are two primary venues: the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).
Headquartered at 20 South Wacker Drive, Chicago, Illinois, the CME is the largest derivatives marketplace in the world. Founded in 1898 as the Chicago Butter and Egg Board, the CME is currently property of the CME Group. It exists as a combination of four American exchanges: the CME, Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), and Commodity Exchange Inc. (COMEX).
Featuring products facing all major asset classes, the CME offers second-to-none market access via the CME Globex online platform. If you’re contemplating futures trading US exchanges, then the CME is a must-visit destination. Here are its featured products readily available for active trade:
| Product | Symbol | Asset Class |
|---|---|---|
| E-mini S&P 500 | ES | Equities Index |
| E-mini NASDAQ 100 | NQ | Equities Index |
| E-mini DOW | YM | Equities Index |
| Henry Hub Natural Gas | NG | Energy |
| WTI Crude Oil | CL | Energy |
| Euro FX | 6E | Currency |
| 10-Year Note | ZN | Interest Rate |
| 5-Year Note | ZF | Interest Rate |
| Gold | GC | Gold |
Throughout the CME’s storied history, it has been on the forefront of innovative derivatives product offerings. From weather-based futures contracts to the new Micro E-minis, the CME offers customers an unparalleled diversity of trading options.
Founded in 1973, the CBOE was the first marketplace offering the trade of standardized options contracts. Since its inception, innovation has been a key part of the CBOE’s mantra. A pioneer in computerized trading, as well as in put option offerings, the exchange has functioned as a global leader in the trade of options and specialized derivatives products.
In 2017, the CBOE extended its reach as a primary venue for futures trading US derivatives. Through the acquisition of Bats Global Markets, the CBOE became a world-class exchange holding company. Here are a few of the CBOE’s most popular products:
| Product | Symbol | Asset Class |
|---|---|---|
| Volatility Index | VIX | Index |
| S&P 500 Options | SPX | Equity Index |
| Dow Jones Options | DJX | Equity Index |
| Russell 2000 Options | RUT | Equity Index |
In contrast to the CME’s broad array of offerings, the CBOE provides clients a specialized suite of products. By far, the most popular is the Volatility Index, known in trading circles simply as the “VIX.” The VIX is based upon stock and futures trading US market fluctuations pertaining to the S&P 500.
Retail traders and institutional investors use the VIX in a variety of unique ways. Existing as both a premier hedging tool and a prime target for speculative enterprise, it attracts participants from around the globe. In either context, the VIX is widely viewed as being the benchmark measure of U.S. equities market volatility.
If you’re an aspiring futures trader and interested in trading American exchanges, then the CME and CBOE are worth a look. Featuring dynamic pricing volatility and robust liquidity, these two exchanges represent the ultimate in U.S.-based futures trading.