GLOBAL

COMMODI
TY
EXCHANG
ES
NEW YORK MERCANTILE EXCHANGE

(NYMEX) is the world's largest physical commodity futures exchange,

located in New York City. Its two principal divisions are the New York
Mercantile Exchange and Commodity Exchange, Inc (COMEX) which
were once separate but are now merged. The parent company of the
New York Mercantile Exchange, Inc., NYMEX Holdings, Inc. became
listed on the New York Stock Exchange on November 17, 2006, under
the ticker symbol NMX.
The New York Mercantile Exchange handles billions of dollars worth
of energy products, metals, and other commodities
being bought and sold on the trading floor and the overnight
electronic trading computer systems. The prices quoted
for transactions on the exchange are the basis for prices that people
pay for various commodities throughout the world.
The floor of the NYMEX is regulated by the Commodity Futures
Trading Commission, an independent agency of the United States
government. Each individual company that trades on the exchange must
send its own independent brokers. Therefore, a few employees on the
floor of the exchange represent a big corporation and the exchange
employees only record the transactions and have nothing to do with the
actual trade. The NYMEX is one of the few exchanges in the world to
maintain the open outcry system, where traders employ shouting and
complex hand gestures on the physical trading floor.
On February 26, 2003, the New York Board of Trade (NYBOT) signed
a lease agreement with the NYMEX to move into its World Financial
Center headquarters and trading facility after the NYBOT's original
headquarters and trading floor was destroyed in the September 11,
2001 terrorist attacks on the World Trade Center.
After the September 11 attacks, the NYMEX built a $12 million trading
floor backup facility outside of New York City with 700 traders'
booths, 2,000 telephones, and a backup computer system. This backup
is in case of another terrorist attack on Lower Manhattan or a natural
disaster

HISTORY OF GLOBAL COMMODITY EXCHANGE

Commodity exchanges began in the middle of the 19th century, when

businessmen began organizing market forums to make buying and selling
of commodities easier. These marketplaces provided a place for buyers
and sellers to set the quality, standards, and establish rules of
business. By the late 1800s about 1,600 marketplaces had sprung up
at ports and railroad stations. In 1872, a group of
Manhattan dairy merchants got together and created
the Butter and Cheese Exchange of New York. Soon, egg trade became
part of the business conducted on the exchange and the name was
modified to the Butter, Cheese, and Egg Exchange. In 1882, the name
finally changed to the New York Mercantile Exchange when opening
trade to dried fruits, canned goods, and poultry.
As centralized warehouses were built into principal market centers
such as New York and Chicago in the early 20th century, exchanges in
smaller cities began to disappear giving more business to the exchanges
such as the NYMEX in bigger cities. In 1933, the COMEX was
established through the merger of four smaller exchanges; the
National Metal Exchange, the Rubber Exchange of New York, the
National Raw Silk Exchange, and the New York Hide Exchange. On
August 3, 1994, the NYMEX and COMEX finally merged under the
NYMEX name. Now, the NYMEX operates in a trading facility and
office building with two trading floors in the World Financial Center in
downtown Manhattan

COMMODITIES TRADED ON THE GLOBAL EXCHANGE

NYMEX DIVISION

 Coal
 Crude oil
 Electricity
 Gasoline
 Heating oil
 Natural gas
 Palladium
 Platinum
 Propane
 Uranium

COMEX DIVISION

 Aluminum
 Copper
 Gold
 Silver

LONDON METAL EXCHANGE

The London Metal Exchange or LME is the futures

exchange with the world's largest market in options, and futures
contracts on base and other metals. As the LME offers contracts with
daily expiry dates of up to three months from trade date, along with
longer-dated contracts, it also allows for cash trading. It
offers hedging, worldwide reference pricing and the option of physical
delivery to settle contracts.
It is located at 56 Leaden hall Street, London.

HISTORY OF LONDON METAL EXCHANGE

The London Metal Market and Exchange Company was

founded in 1877, but the market traces its origins back to 1571 and the
opening of the Royal Exchange. At first, only copper was
traded, lead and zinc were soon added but only gained official trading
status in 1920. The exchange was closed over WW II and did not re-
open until 1952. Other metals traded extended to
include alluminium (1978), nickel (1979), alluminium alloy (1992)
and steel (2008). The exchange also started trading plastics in 2005.
The total value of the trade is around $US 10.24 Trillion annually.

MARKETS
 There is constant inter-office trading, but a lot of trading is still
done by open-outcry in the Ring. There is a morning and an afternoon
trade, where each of the eight metal contracts are traded in two
blocks with a five-minute session for each contract (the sessions last
from 11.45 until 13.15 and from 15.10 until 16.35, each session includes
a 10-minute break). The second trading block in the morning is key to
setting the Daily Official Exchange rates. After the official trades,
there is 15 minutes of "kerb" trading. Trades are
in futures, options and TAPOs (traded average-price options, a form
of Asian option).
In addition to the 12 companies who have exclusive rights to trade in
the Ring, around 100 companies are involved in the LME in total.
Contrary to popular belief, the precious metals, gold and silver, are not
traded on the London Metal Exchange, but on the over-the-
counter market usually referred to as the London Bullion Market, by
the members of the London Bullion Market
Association. Platinum and palladium are traded on the London Platinum
and Palladium Market. Minor metals are not yet traded on the LME but
the exchange announced that they will begin trading Cobalt and
Molybdenum.[3] Many companies involved in minor metals are members
of the Minor Metal Trade Association.

CHICAGO BOARD OF TRADE

CBOT, established in 1848, is the world's oldest futures

and options exchange. More than 50 different options and futures
contracts are traded by over 3,600 CBOT members through open
outcry and Trading. Volumes at the exchange in 2003 were a record
breaking 454 million contracts. On 12 July 2007, the CBOT merged
with the CME under the CME Group holding company and ceased to
exist as an independent entity.

HISTORY
The concerns of U.S. merchants to ensure that
there were buyers and sellers for commodities have resulted
into forward contracts to sell and buy commodities. Still, credit
risk remained a serious problem. The CBOT took shape to provide a
centralized location, where buyers and sellers can meet to negotiate
and formalize forward contracts.
In 1864, the CBOT listed the first ever standardized "exchange
traded" forward contracts, which were called futures contracts. In
1919, the Chicago Butter and Egg Board[1], a spin-off of the CBOT, was
reorganized to enable member traders to allow future trading, and its
name was changed to Chicago Mercantile Exchange (CME).
On October 19, 2005, the initial public offering (IPO) of 3,191,489
CBOT shares was priced at $54.00 (USD) per share. On its first day of
trading the stock closed up +49% at $80.50 (USD) on the NYSE. In
2007, the CBOT and the CME merged to form the CME Group.

TOKYO COMMODITY EXCHANGE

The Tokyo Commodity Exchange (TOCOM) is a non-

profit organization, and regulates trading of futures
contracts and option products of all commodities in Japan. The Tokyo
Gold Exchange, the Tokyo Rubber Exchange, and the Tokyo Textile
Exchange merged in 1984 to form TOCOM.
Traded contracts are:
  Futures
 METALS

 Gold
 Silver
 Platinum
 Aluminum
 Palladium
 OIL
 Crude oil
 Kerosene
 Gasoline
 Rubber
 Option
 Metals

 Gold

CHICAGO MERCANTILE EXCHANGE

The Chicago Mercantile Exchange (CME) (often called "the Chicago

Merc," or "the Merc") is an American financial and
commodity derivative exchange based in Chicago. The CME was founded
in 1898 as the Chicago Butter and Egg Board. Originally, the exchange
was a non-profit organization. The exchange demutualized in November
2000, went public in December 2002, and it merged with the Chicago
Board of Trade in July 2007 to become CME Group Inc. The Chief
Executive Officer of CME Group is Craig S. Donohue.[1][2] On August 18,
2008 shareholders approved a merger with the New York Mercantile
Exchange.
CME trades several types of financial instruments: interest
rates, equities, currencies, and commodities. It also offers trading in
alternative investments such as weather and real estate derivatives.
CME has the largest options and futures contracts open
interest (number of contracts outstanding) of any futures exchange in
the world.
On October 7, 2008, the Chicago Mercantile Exchange (CME) Group
announced that it will be teaming up with CITADEL INVESTMENT
GROUP LLC to create a transparent electronic trading platform
for credit default swaps.[3] The joint venture between CME and Citadel
will operate as an independent organization with its own board of
directors and management team.[4] The new venture plans to initially
provide clearing services for contracts involving credit-default swap
indices, which typically have more standardized terms than swap
contracts for individual bonds. It is expected to eventually expand its
offering to include other derivative indices as well as the multitude of
single-name corporate derivatives.[5][6]Major market participants will be
invited to join the platform as founding members, in return for
receiving a 30 percent equity portion of the venture.

BURSA MALAYSIA EXCHANGE

The Bursa Malaysia (MYX: 1818) or Malaysia

Exchange, MYX previously known as Kuala Lumpur Stock
Exchange (KLSE, Bursa Saham Kuala Lumpur in Malay) dates back to
1930 when the Singapore Stockbrokers' Association was set up as a
formal organisation dealing in securities in Malaya. In 1937 it was re-
registered as the Malayan Stockbrokers' Association, but it still did
not trade public shares.
By 1960s, the Malayan Stock Exchange was formed and public trading
of shares began on 9 May. In 1961, the Board system was introduced
whereby two trading rooms, one each in Singapore and Kuala Lumpur,
were linked by direct telephone lines into a single market with the same
stocks and shares listed at a single set of prices on both boards.
The Stock Exchange of Malaysia was officially formed in 1964 and in
the following year, with the secession of Singapore from Malaysia, the
common stock exchange continued to function under the name Stock
Exchange of Malaysia and Singapore (SEMS).
In 1973, with the termination of currency interchangeability between
Malaysia and Singapore, the SEMS was separated into The Kuala
Lumpur Stock Exchange Bhd (KLSEB) and The Stock Exchange of
Singapore (SES). Malaysian companies continued to be listed on SES
and vice-versa. A new company limited by guarantee, The Kuala Lumpur
Stock Exchange (KLSE) took over operations of KLSEB as the stock
exchange. In 1994, it was re-named Kuala Lumpur Stock Exchange.
Kuala Lumpur Stock Exchange became a demutualised exchange and was
re-named Bursa Malaysia in 2004. It consists of a Main Board, a
Second Board and MESDAQ with total market capitalization
of MYR700 billion (US$189 billion).
In 2005, Bursa Malaysia was listed at its own exchange on 18 March.
On 18 April, Bursa Malaysia introduced CBRS, a scheme which allows all
investors to access research reports of Bursa-listed companies free-
of-charge.

HISTORY

The first formal securities business organisation in Malaysia was

the Singapore Stockbrokers' Association, established in 1930[3]. It was
re-registered as the Malayan Stockbrokers' Association in 1937. The
Malayan Stock Exchange was established in 1960 as the bourse for
public trading of shares in Malaya. The board system with trading
rooms in Singapore andKuala Lumpur, linked by direct telephone lines
into a single market with the same shares listed at a single set of
prices on both boards, was established in 1961.
By 1964, the Stock Exchange of Malaysia was established. With the
secession of Singapore from Malaysia in 1965, the Stock Exchange of
Malaysia became known as Stock Exchange of Malaysia and
Singapore. In 1973, with the currency interchangeability between
Malaysia and Singapore ceased, the Stock Exchange of Malaysia and
Singapore was divided into KLSEB and SES. The Kuala Lumpur Stock
Exchange which was incorporated on December 14, 1976 as a company
limited by guarantee, took over the operations of KLSEB in the same
year.

DALIAN COMMODITY EXCHANGE

It is a Chinese futures exchange based in Dalian. It is

a non-profit, self-regulating and membership legal entity established on
February 28, 1993.
Dalian Commodity Exchange trades in futures contracts underlined by a
variety of agricultural and industrial produce on a national scale. So
far, futures contracts on soybean, soybean oil, corn, palm oil, soymeal
and LLDPE, a petroleum-based product, are traded on the Dalianbourse.
The exchange has the deepest liquidity pool among all Chinese
Commodity Futures Exchanges. According to the Futures Industry
Association, the bourse has been the largest mainland futures
exchange by volume for eight years, half the domestic market share in
2007, and captures roughly 2% of global futures market share
(including financial futures). A near-tripling in volumes of its
benchmark corn future in 2006 saw the contract leapfrog the DCE soy
complex to become the single-largest product, with the 65m traded,
trailing only Nymex WTI Crude in the global commodity rankings.
According to the Futures Industry Association, DCE is the
second largest agricultural futures bourse in the world, with a 29%
market share.[1] In 2007, total trading volume and turnover reached
371 million contracts and RMB 11.97 trillion (1.67 trillion USD). As of
November 2007, the exchange had 194 members – including 180
brokers, with a reach of more than 160,000 investors. Louis Dreyfus
became the first foreign member in June 2006.

NATIONAL COMMODITY EXCHANGE LIMITED

National Commodities Exchange Limited (NCEL) is

Pakistan's first futures commodity market having its registered
Head office in Karachi. It is the only company in Pakistan to
provide a centralized and regulated place for commodity futures
trading and is regulated by Securities and Exchange Commission
of Pakistan (SECP). It has started full trading activities on 11
May 2007.

COMMODITIES TRADED

NCEL has initially started trading in Gold only but soon would be
extended to Wheat, Rice, Cotton yarn and Sugar. It is also trading 10
gram physical gold, 100 gram gold futures, 1 kg gold futures and kibor
futures.
EUROPEAN ENERGY EXCHANGE

European Energy Exchange AG, Germany's energy

exchange, is the leading energy exchange in Central Europe.
The European Energy Exchange is located in Leipzig. Preceding
companies were LPX Leipzig Power Exchange, located in Leipzig and
European Energy Exchange, located in Frankfurt. Both exchanges
merged in the year 2002.
EEX operates market platforms for trading in power, natural
gas, CO2 emission allowances and coal.

AFRICA MERCANTILE EXCHANGE

The AFMX; in full, Africa Mercantile Exchange Limited) is

a Nairobi-based Commodity futures and options exchange. It is the
first fully diversified commodities exchange in Africa in terms of
Product portfolio.
It is also the first mercantile exchange to be created
in Africa (see list of Commodities exchanges). On June 24, 2005, the
Africa Mercantile Exchange was incorporated, creating the Africa
Mercantile Exchange AfMX.[1].
Founded on June 24, 2005 by Wilson Thungu Thuku, the "Africa
Mercantile Exchange" (AfMX) has had a consistent history of provision
of responsive services provided to the financial market and the Kenyan
economy.
The exchange is proactively involved in the reforms of the national
financial system aimed at instituting the commodities futures and
options legislation that will enhance regulation and help promulgate the
commodities futures trading authority.
Through self-regulation, the Africa Mercantile Exchange continues to
play an institutional role. The exchange operates as a for profit
company. Since 2005, The Exchange has constantly evolved with the
adoption of technology such as the introduction of computer-based
systems, hand held devices and the internet. In 2005, AfMX was the
first African commodities market to implement an automated system
for the dissemination of information online and in real-time, through a
wide network of computer terminals.
At the end of the 2007, AfMX also developed a system of secure
storage and online services for brokerage firms. Currently, the AfMX
is a fully integrated electronic exchange.
This year 2010, a new system of electronic trading, known as After®,
is being implemented. The After® extends the potential volume of
processing of information and allows the Exchange to increase its
overall volume of activities.
With the aim to deepen mass access to the futures markets, AfMX has
introduced the "core trader", an internet-based trading system that
allows individual investors and proprietary traders to trade futures and
options. The system enables users to execute buy and sell orders
online. The Africa Mercantile Exchange is steadfastly involved in
developing strategic alliances with existing commodity futures and
options exchanges in order to consistently avail to traders and hedgers
responsive solutions in risk management.
AUSTRALIAN SECURITIES EXCHANGE

The Australian Securities Exchange (ASX) is the

primary stock exchange in Australia. The ASX began as separate state-
based exchanges established as early as 1861. Today trading is all-
electronic and the exchange is a public company, listed on the exchange
itself.
The Australian Securities Exchange as it is now known resulted from
the merger of the Australian Stock Exchange and the Sydney Futures
Exchange in December 2006, becoming the 9th largest stock exchange
in the world.
The biggest stocks traded on the ASX, in terms of their market
capitalisation, include BHP Billiton, Commonwealth Bank of
Australia, Telstra Corporation, Rio Tinto, National Australia
Bank and Australia and New Zealand Banking Group. As at 31 December
2006 the three largest sectors by market capitalisation were financial
services (34%), commodities (20%) and listed property trusts (10%).
The major market index is the S&P/ASX 200, an index made up of the
top 200 shares in the ASX. This supplanted the previously
significant All Ordinaries index, which still runs parallel to the S&P
ASX 200. Both are commonly quoted together. Other indices for the
bigger stocks are the S&P/ASX 100 and S&P/ASX 50.
The ASX is a public company, and its own shares are traded on the
ASX. However, the corporation's charter restricts maximum individual
holdings to a small fraction of the company.
While the ASX regulates other listed companies listed on the ASX, it
cannot regulate itself, and is regulated by the Australian Securities
and Investments Commission (ASIC).
The current managing director Robert Elstone was appointed in July
2006. Prior to the merger of ASX with the Sydney Futures Exchange
(SFE), Robert Elstone was the CEO of the SFE.