Contract market

Contract market,

Definition of Contract market:

  1. An exchange that is registered with the Commodity Futures Trading Commission (CFTC) to trade specific commodity or option contracts. See Commodity Futures Exchange; Derivatives.

  2. A contract market, or designated contract market (DCM) is any board of trade (exchange) designated to trade a specific options or futures contracts. It must register with the overseeing regulatory authority, most notably the Commodity Futures Trading Commission (CFTC), pursuant to Section 5 of the Commodity Exchange Act (CEA). Most large futures markets also provide clearing and settlement functions.

  3. Contract market, or designated contract market, is a registered exchange where commodities and option contracts are traded. It is sometimes known as a "designated exchange.".

How to use Contract market in a sentence?

  1. Contract markets must register with the overseeing regulatory authority, such as the Commodity Futures Trading Commission (CFTC), pursuant to Section 5 of the Commodity Exchange Act (CEA).
  2. In the interest of maintaining liquidity, contracts trading on a contract market have standardized sizes, expiration dates, and, for options, strike prices, which contrasts with over-the-counter (OTC) contracts.
  3. Contract market, or designated contract market, is a registered exchange where commodities and option contracts are traded and its core function is to ensure fair and orderly trading, financial controls, and the efficient dissemination of trade price information.

Meaning of Contract market & Contract market Definition