The case describes the CME Group, the world's largest commodities exchange, futures and options on futures contracts, history, management and strategic choices companies face. CME Group was formed from the oldest and most famous markets in the world. Traders on the exchange traded contracts to hedge risks or speculate on future trends in prices. In recent decades, trade has undergone significant growth. From its roots in the trading of agricultural products generally takes place in the face-to-face transactions in the pits on the stock exchanges, CME introduced new products hedging metals, energy and finance, and e-commerce has brought new players. Some of these new players, such as pension funds, are much larger and have different strategic programs than traditional agriculture-related parties. The case raises the question of whether the increased speculation helps or harms the exchange or its members. In addition, the financial crisis of 2007 and 2008 drove the new regulation in the industry, which has brought new challenges and opportunities for CME. "Hide
by Forest Reinhardt, James Weber Source: Harvard Business School 32 pages. Publication Date: January 5, 2011. Prod. #: 711005-PDF-ENG
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