International Monetary Market (IMM)
The International Money Market or IMM is a division of the Chicago Mercantile Exchange (CME) that deals with the trading of currency and interest rate futures and options. While significant rewards are possible when trading financials futures, the CME outlines specific risks related to this segment of its business, including: Economic, political and geopolitical market conditions Legislative and regulatory changes Broad or quick changes in the industry and financial markets Shifts in price levels, contract volumes and/or volatility in the derivatives markets, along with underlying markets in equities, foreign exchange, interest rates and commodities Changes in global or regional demand or supply for commodities In 2010, the CME had expanded further, purchasing a 90% interest in the Dow Jones stock and financial indexes. In 2012, it continued on its growth spree CME with the purchase of the Kansas City Board of Trade, which was the dominant player in hard red winter wheat. The International Money Market or IMM is a division of the Chicago Mercantile Exchange (CME) that deals with the trading of currency and interest rate futures and options. In 2007, the CME merged with the Chicago Board of Trade to create the CME Group, one of the largest financial exchanges in the world.
What Is the International Monetary Market?
The International Money Market or IMM is a division of the Chicago Mercantile Exchange (CME) that deals with the trading of currency and interest rate futures and options. Trading on the IMM started in May 1972, when the CME and the IMM merged.
International Monetary Market Explained
The IMM division of the CME includes such currencies as the U.S. dollar, the British pound, the euro, and the Canadian dollar. Along with currencies, the IMM trades the London Interbank Offer Rate (LIBOR), the 10-year Japanese bond, and the U.S. Consumer Price Index (CPI).
History of the International Monetary Market (IMM)
The Chicago Mercantile Exchange was founded in 1898. Its original name was the "Chicago Butter and Egg Board" although it changed its name in 1919. The CME was the first financial exchange to "demutualize" and become publicly traded in 2002. In 1961, the CME launched its first futures market for frozen pork bellies. In 1969, it added financial futures and currency contracts. The first interest rate, bond, and futures contracts commenced in 1972.
According to its 2019 annual report, the CME on average handles an average daily volume of 19.2 million contracts, a slight decline from 2018. While some trading continues to take place in the traditional open outcry method, 80% of trading is done electronically through its CME Globex electronic trading platform.
Additionally, CME Group operates CME Clearing, a leading central counter-party clearing provider.
Limitations of the International Monetary Market
While significant rewards are possible when trading financials futures, the CME outlines specific risks related to this segment of its business, including:
Related terms:
Chicago Mercantile Exchange (CME)
The Chicago Mercantile Exchange or CME is a futures exchange which trades in interest rates, currencies, indices, metals, and agricultural products. read more
Commodity Market
A commodity market is a physical or virtual marketplace for buying, selling, and trading commodities. Discover how investors profit from the commodity market. read more
Consumer Price Index (CPI)
The Consumer Price Index (CPI) measures the average change in prices over time that consumers pay for a basket of goods and services. read more
Contract Market
Contract market, or designated contract market, is a registered exchange where commodities and option contracts are traded. read more
Demutualization
Demutualization is when a mutual company owned by its members converts into a company owned by shareholders. read more
e-CBOT
E-CBOT was an electronic trading platform allowing traders to transact in futures and options contracts listed on the Chicago Board of Trade (CBOT). read more
Futures Exchange
A futures exchange is a central marketplace, physical or electronic, where futures contracts and options on futures contracts are traded. read more
Globex
Introduced in 1992, Globex is an electronic trading platform used for derivative, futures, and commodity contracts developed for the CME. read more
Interest Rate Future
An interest rate future is a financial contract between the buyer and seller agreeing to the future delivery of any interest-bearing asset. read more
Open Outcry
A formerly popular method of trading at stock or futures exchanges involving hand signals and verbal bids and offers to convey trading information. read more