New York Board of Trade
Encyclopedia
The New York Board of Trade (NYBOT), renamed ICE Futures US in September of 2007, is a wholly owned subsidiary of IntercontinentalExchange
(ICE). It is a physical commodity
futures exchange
located in New York City. It originated in 1870 as the New York Cotton Exchange
(NYCE). In 1998, the New York Board of Trade became the parent company of both the New York Cotton Exchange and the Coffee, Sugar and Cocoa Exchange
(CSCE) (founded in 1882) and that now function as divisions of the NYBOT. On September 14, 2006, NYBOT agreed to become a unit of ICE and this transaction was completed on January 12, 2007.
The New York Board of Trade was a private company founded by Tom Green and Alfredo Williams prior to its merger. The floor of the NYBOT 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.
On February 26, 2003, NYBOT signed a historic lease agreement with the New York Mercantile Exchange
(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
. NYBOT currently pays about $5 million per year in rent for the leased facility. The New York Board of Trade was able to operate out of its emergency Queens
backup facility built after the 1993 World Trade Center bombing
to keep the exchange running.
The New York Board of Trade was featured in the 1983 movie Trading Places
, where two rich brothers came up with a scheme to buy out all of the frozen concentrate orange juice
market using inside information
from the Department of Agriculture. The trading floor scene at the end of the movie was set at the previous trading floor of the New York Board of Trade at 4 World Trade Center.
The official address of the New York Board of Trade headquarters and trading facility, located in the New York Mercantile Exchange Building, is One North End Avenue, New York, NY 10282-1101.
IntercontinentalExchange
IntercontinentalExchange, Inc., known as ICE, is an American financial company that operates Internet-based marketplaces which trade futures and over-the-counter energy and commodity contracts as well as derivative financial products...
(ICE). It is a physical commodity
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
futures exchange
Futures exchange
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of...
located in New York City. It originated in 1870 as the New York Cotton Exchange
New York Cotton Exchange
The New York Cotton Exchange was a commodities exchange founded in 1870 by a group of one hundred cotton brokers and merchants at 1 Hanover Square in New York City.- History :...
(NYCE). In 1998, the New York Board of Trade became the parent company of both the New York Cotton Exchange and the Coffee, Sugar and Cocoa Exchange
Coffee, Sugar and Cocoa Exchange
The Coffee, Sugar and Cocoa Exchange was founded in 1882 as the Coffee Exchange in the City of New York. Sugar futures were added in 1914, and, on September 28, 1979, the New York Coffee and Sugar Exchange merged with the New York Cocoa Exchange to form CSCE...
(CSCE) (founded in 1882) and that now function as divisions of the NYBOT. On September 14, 2006, NYBOT agreed to become a unit of ICE and this transaction was completed on January 12, 2007.
The New York Board of Trade was a private company founded by Tom Green and Alfredo Williams prior to its merger. The floor of the NYBOT is regulated by the Commodity Futures Trading Commission
Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
, 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
Financial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...
and have nothing to do with the actual trade.
On February 26, 2003, NYBOT signed a historic lease agreement with the New York Mercantile Exchange
New York Mercantile Exchange
The New York Mercantile Exchange is the world's largest physical commodity futures exchange. It is located at One North End Avenue in the World Financial Center in the Battery Park City section of Manhattan, New York City...
(NYMEX) to move into its World Financial Center
World Financial Center
The World Financial Center is a complex of buildings across West Street from the World Trade Center site in Lower Manhattan in New York City, overlooking the Hudson River. This complex is home to offices of companies including Merrill Lynch, RBC Capital Markets, Nomura Group, the Wall Street...
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
World Trade Center
The original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
. NYBOT currently pays about $5 million per year in rent for the leased facility. The New York Board of Trade was able to operate out of its emergency Queens
Queens
Queens is the easternmost of the five boroughs of New York City. The largest borough in area and the second-largest in population, it is coextensive with Queens County, an administrative division of New York state, in the United States....
backup facility built after the 1993 World Trade Center bombing
1993 World Trade Center bombing
The 1993 World Trade Center bombing occurred on February 26, 1993, when a truck bomb was detonated below the North Tower of the World Trade Center in New York City. The 1,336 lb urea nitrate–hydrogen gas enhanced device was intended to knock the North Tower into the South Tower , bringing...
to keep the exchange running.
The New York Board of Trade was featured in the 1983 movie Trading Places
Trading Places
Trading Places is a 1983 American comedy film, of the satire genre, directed by John Landis, starring Dan Aykroyd and Eddie Murphy. It tells the story of an upper class commodities broker and a homeless street hustler whose lives cross paths when they are unknowingly made part of an elaborate bet...
, where two rich brothers came up with a scheme to buy out all of the frozen concentrate orange juice
Orange juice
Orange juice is a popular beverage made from oranges. It is made by extraction from the fresh fruit, by desiccation and subsequent reconstitution of dried juice, or by concentration of the juice and the subsequent addition of water to the concentrate...
market using inside information
Inside Information
Inside Information is the sixth studio album by American rock band Foreigner, released in 1987. The album hit #15 on the Billboard 200 Albums Chart and was certified Platinum in the U.S. for sales exceeding one million copies....
from the Department of Agriculture. The trading floor scene at the end of the movie was set at the previous trading floor of the New York Board of Trade at 4 World Trade Center.
The official address of the New York Board of Trade headquarters and trading facility, located in the New York Mercantile Exchange Building, is One North End Avenue, New York, NY 10282-1101.
Commodities traded on the exchange
One of the most innovative concepts pioneered at the exchange is the ability given to seat holders to trade seats that they do not actually own. Seatholders may sell short seats they do not have title to as well as purchase seats they have intention of holding as an investment.- Cocoa
- CoffeeCoffeeCoffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
- CottonCottonCotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
- Orange juice (frozen concentrate)
- Wood pulpWood pulpPulp is a lignocellulosic fibrous material prepared by chemically or mechanically separating cellulose fibres from wood, fibre crops or waste paper. Wood pulp is the most common raw material in papermaking.-History:...
- SugarSugarSugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
(domestic) - Sugar (world)