The case describes the planet's biggest commodities exchange, CME Group, futures and options on futures contracts, history, regulation, and the tactical alternatives the business faced. CME Group was formed from the earliest and most well-known exchanges on earth. Dealers on the exchange purchased and sold contracts in order to hedge risk or speculate on future price trends. In recent decades trading had undergone substantial growth.
Many of these brand new participants, like pension funds, were bigger and had different tactical plans than the traditional agricultural associated participants. The case raises the question of whether increased speculation was helping or hurting its participants or the exchange. Moreover, the fiscal disaster of 2007 and 2008 was driving new regulation in the business which brought new challenges as well as opportunities to CME.
PUBLICATION DATE: January 05, 2011 PRODUCT #: 711005-HCC-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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