Definition
The New York Board of Trade (NYBOT) was a prominent physical commodity futures exchange based in New York City. It originated in 1870 as the New York Cotton Exchange (NYCE), focusing primarily on cotton trading. In 1998, the NYBOT became the parent company of both the New York Cotton Exchange and the Coffee, Sugar, and Cocoa Exchange (CSCE), which was established in 1882. Both exchanges subsequently functioned as divisions of the NYBOT. The NYBOT has been a wholly-owned subsidiary of Intercontinental Exchange, Inc. (ICE) since 2007 and was renamed ICE Futures US in September 2007.
Examples
- Cotton Futures Trading: Traders could buy and sell futures contracts on cotton through the NYBOT, which provided a platform for price discovery and risk management in cotton markets.
- Coffee Futures: The Coffee, Sugar, and Cocoa Exchange (CSCE) division within the NYBOT enabled trading in coffee futures, crucial for various stakeholders in global coffee supply chains.
- Sugar Options: The NYBOT allowed for the trade of sugar options, providing hedgers and speculators with tools to mitigate market risks associated with sugar prices.
Frequently Asked Questions (FAQs)
What is the New York Board of Trade (NYBOT)?
The New York Board of Trade (NYBOT) was a physical commodity futures exchange located in New York City. It included the New York Cotton Exchange (NYCE) and the Coffee, Sugar, and Cocoa Exchange (CSCE).
What did the NYBOT trade?
The NYBOT facilitated trading in a range of physical commodities, primarily cotton, coffee, sugar, and cocoa, through futures and options contracts.
When did NYBOT become part of Intercontinental Exchange, Inc.?
The NYBOT became a wholly-owned subsidiary of Intercontinental Exchange, Inc. (ICE) in 2007 and was subsequently renamed ICE Futures US.
Are the NYCE and CSCE still operational under NYBOT?
Both NYCE and CSCE continued to function as divisions of the NYBOT, even after becoming part of ICE Futures US.
What role did NYBOT play in commodity trading?
The NYBOT provided a regulated platform for futures and options trading in several physical commodities, aiding in price discovery, market transparency, and risk management.
Related Terms
- Commodity Futures: Futures contracts involving physical commodities such as metals, energy products, agricultural produce, etc.
- New York Cotton Exchange (NYCE): The original entity formed in 1870, a platform for trading cotton futures.
- Coffee, Sugar, and Cocoa Exchange (CSCE): Established in 1882, a division of NYBOT that deals with coffee, sugar, and cocoa futures and options.
- Intercontinental Exchange, Inc. (ICE): A global exchange and clearinghouse operator that acquired NYBOT in 2007.
- Futures Exchange: A marketplace where futures contracts are bought and sold.
Online References
Suggested Books for Further Studies
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“Options, Futures, and Other Derivatives” by John C. Hull
- A comprehensive guide on derivatives, including futures and options.
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“Commodity Markets and the Global Economy” by Blake C. Clayton
- This book presents insightful analysis on commodity markets and their global impact.
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“An Introduction to Commodity Trading” by Carley Garner
- A practical introduction to the fundamentals of commodity trading.
Fundamentals of the New York Board of Trade (NYBOT): Trading Basics Quiz
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