Chicago Board of Trade
A historic Chicago derivatives exchange specializing in futures and options on agricultural and financial products.
Last updated August 21, 2026
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Overview
The Chicago Board of Trade, commonly known as CBOT, is an American futures and options exchange founded in Chicago in 1848. It was created by merchants and businessmen who wanted a more organized marketplace for negotiating and formalizing forward contracts, particularly in a commercial environment where agricultural supply, transportation and credit risk made bilateral transactions difficult to manage. The exchange helped establish standardized procedures for trading commodity contracts and became one of the foundational institutions of modern derivatives markets. CBOT introduced standardized exchange-traded futures contracts in 1864. These contracts gave market participants a way to manage exposure to changing prices for commodities such as grain, while also creating a liquid venue for speculation and price discovery. Over time, the exchange expanded beyond its original agricultural role and became associated with futures and options covering agricultural commodities, interest rates, equity indexes and other financial instruments. Its trading culture became especially identified with open outcry, in which traders used voices, gestures and distinctive hand signals to communicate bids and offers from raised octagonal pits. The institution remained independent for more than 150 years, although its history was closely connected to the wider development of Chicago's exchange industry. A CBOT spin-off, the Chicago Butter and Egg Board, was reorganized in 1919 and renamed the Chicago Mercantile Exchange, later becoming CBOT's long-time rival. CBOT also played a role in important legal debates concerning exchange rules and competition. In Chicago Board of Trade v. United States, the U.S. Supreme Court held that the Sherman Antitrust Act's language concerning restraints of trade should be assessed under a rule-of-reason approach rather than interpreted literally in every circumstance. CBOT became a public company in 2005, when it completed an initial public offering on the New York Stock Exchange. In 2007, it merged with the Chicago Mercantile Exchange to create CME Group, one of the world's largest derivatives-market operators. CBOT now operates as a designated contract market within CME Group rather than as an independent listed exchange. The CBOT name continues to identify a major product franchise and a historically important trading venue within the CME Group network. The exchange has been headquartered since 1930 in the Chicago Board of Trade Building at 141 West Jackson Boulevard in the city's Loop. Designed by Holabird & Root, the Art Deco skyscraper is a Chicago Landmark and National Historic Landmark. Its architectural identity, including the statue of Ceres atop the building, is closely associated with the exchange's agricultural origins. Although electronic trading has reduced the centrality of the trading pits, the CBOT brand remains linked to the history of organized futures trading and to Chicago's role as a global financial center.
History
The Chicago Board of Trade was established on April 3, 1848, in response to the commercial problems faced by merchants in a rapidly growing agricultural and transportation hub. Buyers and sellers needed dependable ways to agree on future deliveries, but privately negotiated forward contracts exposed participants to uncertainty over quality, delivery and counterparty performance. Discussions among Chicago merchants led to a formal organization, followed by the preparation and adoption of rules by its charter members. The exchange's significance increased when it introduced standardized exchange-traded futures contracts in 1864. Standardization made contracts easier to compare, transfer and offset before delivery. It also supported the development of a transparent market for price discovery and hedging, particularly for grain and other agricultural commodities moving through the Midwest. The CBOT's procedures and membership structure became models for the organized derivatives industry. CBOT's institutional history was intertwined with that of other Chicago exchanges. The Chicago Butter and Egg Board, which originated as a CBOT spin-off, was reorganized in 1919 and became the Chicago Mercantile Exchange. The two exchanges later developed into major competitors. CBOT also became involved in a significant antitrust case after restrictions on after-hours trading were challenged. In Chicago Board of Trade v. United States, the Supreme Court rejected an automatic interpretation of every restraint as unlawful under the Sherman Act and adopted a rule-of-reason analysis. The exchange moved into the Chicago Board of Trade Building in 1930. The building, located at 141 West Jackson Boulevard, was designed by Holabird & Root in the Art Deco style. Its Ceres statue and agricultural symbolism made it an enduring representation of Chicago's commodity-market heritage. The building received Chicago Landmark status in 1977 and National Historic Landmark recognition in 1978. For much of the twentieth century, CBOT trading was conducted through open outcry. Traders in raised pits used spoken bids, offers and hand signals to communicate contract prices and quantities. Electronic trading gradually changed the operating model. In 2006, agricultural contracts were offered through a side-by-side system that combined electronic execution with pit trading. By 2015, open-outcry trading had been eliminated for CBOT agricultural products, although the floor remained historically important and continued to have relevance for certain complex options activity. CBOT became publicly traded in 2005 through an initial public offering on the New York Stock Exchange. Its independent existence ended in 2007, when it merged with the Chicago Mercantile Exchange to form CME Group. The CBOT brand and product complex were retained within the new group. Today, CBOT is a designated contract market of CME Group, serving participants seeking to hedge, speculate or discover prices across agricultural and financial derivatives. Its identity combines a historic exchange name, a globally recognized trading building and a continuing role in CME Group's futures and options business.
- 2015
Agricultural open-outcry trading discontinued
[1]CBOT moved agricultural products fully to electronic trading, substantially reducing the role of its traditional trading pits.
- 2007
CBOT merged into CME Group
[1]CBOT and the Chicago Mercantile Exchange combined to form CME Group, ending CBOT's period as an independent exchange.
- 2006
Side-by-side agricultural trading launched
[1]Agricultural contracts could be traded through both electronic systems and open outcry.
- 2005
CBOT completed an initial public offering
[1]The exchange became publicly traded on the New York Stock Exchange.
- 1978
CBOT Building recognized as a National Historic Landmark
[1]The building received national historic recognition the year after its Chicago Landmark designation.
- 1977
CBOT Building designated a Chicago Landmark
[1]Chicago designated the exchange building as a city landmark because of its architectural and historical importance.
- 1930
CBOT Building became the exchange's headquarters
[1]The exchange began operating from the Art Deco Chicago Board of Trade Building at 141 West Jackson Boulevard.
- 1919
Chicago Mercantile Exchange created from a CBOT spin-off
[1]The Chicago Butter and Egg Board was reorganized and renamed the Chicago Mercantile Exchange, which later became CBOT's principal Chicago rival.
- 1864
Standardized futures contracts introduced
[1]CBOT listed standardized exchange-traded forward contracts, commonly regarded as the first futures contracts offered by the exchange.
- 1848
Chicago Board of Trade founded
[1]Merchants and businessmen formally established the exchange in Chicago to organize forward-contract trading and improve the reliability of commodity transactions.
Products and positioning
A historic global derivatives marketplace and a core CME Group exchange brand, with particular strength in agricultural and financial futures and options.
Commodity derivatives · 1864
Agricultural futures and options
CBOT's historical core consists of futures and options linked to agricultural commodities, especially grain-market products. These contracts support hedging by producers, processors, merchants and other commercial participants exposed to changing commodity prices, while also providing standardized instruments for trading and price discovery. Agricultural contracts were historically associated with the exchange's open-outcry pits and later transitioned to electronic execution.
Financial derivatives
Interest-rate futures and options
CBOT has offered financial derivatives connected with interest rates and government debt markets. These instruments enable market participants to manage or express views on changes in borrowing costs, fixed-income prices and broader monetary conditions. They form part of the financial product complex operated under the CBOT name within CME Group.
Financial derivatives
Equity-index futures and options
The CBOT product range includes derivatives based on equity indexes. Index futures and options provide standardized exposure to broad market movements and can be used for hedging portfolios, adjusting market exposure or implementing trading strategies without transacting in each underlying security.
Brand decisions
2015
Move agricultural products fully to electronic tradingStrategyBackground
Electronic markets had reduced the relative importance of the trading pits, while operating a traditional floor structure remained controversial among market participants.
Action taken
CBOT eliminated open-outcry trading for its agricultural products and shifted those contracts to electronic execution.
Aftermath
The decision substantially reduced the role of the historic agricultural pits and drew objections from some long-time floor traders.
2006
Accept CME acquisition proposalM&ABackground
CBOT and the Chicago Mercantile Exchange were long-standing Chicago competitors whose businesses were increasingly shaped by electronic trading and global competition.
Action taken
CBOT accepted a stock-based acquisition proposal from CME, beginning the process of combining the two exchanges.
Aftermath
The transaction was approved by CBOT shareholders in 2007 and produced CME Group. CBOT continued as a designated contract market and brand within the new company.
Announced transaction value. Approximately $8 billion (2006 announcement)
2006
Introduce side-by-side electronic and pit tradingStrategyBackground
Electronic execution was becoming increasingly important, but CBOT still maintained a large open-outcry trading operation.
Action taken
The exchange allowed agricultural futures to be traded either electronically or through pit traders within a shared liquidity framework.
Aftermath
The model provided a transition between traditional floor trading and fully electronic execution, before agricultural open outcry was ended in 2015.
Recent events
Reported
CME Group announces Chicago trading floor closure[3]
CME Group announced that it would close its Chicago trading floor as a precaution amid the coronavirus outbreak. The closure was set to take effect at Friday's close; the exchange said no coronavirus cases had been found in the Chicago Board of Trade trading floor.
Weekdays and relative dates follow the original report; their exact calendar dates have not been verified.
Sources4 sources
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