The Kansas City Board of Trade (KCBT), was an American

commodity In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a co ...

futures and

options Option or Options may refer to: Computing *Option key, a key on Apple computer keyboards *Option type, a polymorphic data type in programming languages *Command-line option, an optional parameter to a command *OPTIONS, an HTTP request method ...

exchange regulated by the

Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options. The Commodity Exchange Act ...

. Specializing in the hard-red

winter wheat Winter wheat (usually '' Triticum aestivum'') are strains of wheat that are planted in the autumn to germinate and develop into young plants that remain in the vegetative phase during the winter and resume growth in early spring. Classificatio ...

contract, it was located at 4800 Main Street in

Kansas City The Kansas City metropolitan area is a bi-state metropolitan area anchored by Kansas City, Missouri. Its 14 counties straddle the border between the U.S. states of Missouri (9 counties) and Kansas (5 counties). With and a population of more th ...

Missouri Missouri is a state in the Midwestern region of the United States. Ranking 21st in land area, it is bordered by eight states (tied for the most with Tennessee): Iowa to the north, Illinois, Kentucky and Tennessee to the east, Arkansas t ...

. On October 17, 2012, CME Group announced it would acquire the exchange for $126 million in cash. Under the terms, the Kansas City trading floor remained open for at least six months. KCBT market participants were to advise CME for at least three years. The trading floor was consolidated with the Chicago operations in June 2013 and ceased operation in Chicago on July 2, 2015.

History

The exchange was organized in 1856, shortly after Kansas City itself was incorporated in 1853, and served as the city's

chamber of commerce A chamber of commerce, or board of trade, is a form of business network. For example, a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to ...

. It was formally chartered in 1876; among the exchange's founders was Edward H. Allen. It was originally located at 8th and Wyandotte Streets. Its building was designed by Chicago architects Burnham & Root, represented locally by

Walter C. Root Walter C. Root (December 8, 1859 - June 26, 1925) was an American architect practicing in Kansas City, Missouri. He is best known for his major works in Missouri and Kansas, including Dyche Hall on the University of Kansas campus. Early life a ...

. In 1925, the exchange moved to 10th and Wyandotte Streets and in 1966, it moved to its last location at 48th and Main Streets on the Country Club Plaza.

Operations

The primary products traded at the exchange were futures contracts on hard red winter wheat, the principal ingredient of bread, as well as options

derived Derive may refer to: *Derive (computer algebra system), a commercial system made by Texas Instruments * ''Dérive'' (magazine), an Austrian science magazine on urbanism *Dérive, a psychogeographical concept See also * *Derivation (disambiguation ...

from these. The hard red winter wheat contract now trades on the Chicago Board of Trade Designated Contract Market (DCM). Because of its nutritional value, the hard red winter wheat usually trades at a premium to the

Chicago Board of Trade The Chicago Board of Trade (CBOT), established on April 3, 1848, is one of the world's oldest futures and options exchanges. On July 12, 2007, the CBOT merged with the Chicago Mercantile Exchange (CME) to form CME Group. CBOT and three other exch ...

's soft red winter wheat. The exchange facilitated the transfer of ownership of the futures and options contracts through the open outcry system, then later through the electronic market. In 1982, the exchange introduced

Value Line Value Line, Inc. is an independent investment research and financial publishing firm based in New York City, New York, United States, founded in 1931 by Arnold Bernhard. Value Line is best known for publishing ''The Value Line Investment Survey ...

futures, making it the first exchange offering a stock index futures contract. Options on Value Line futures were introduced in 1992. As of December 12, 2004, the Value Line futures began trade solely through an electronic trading platform. Value line futures have since been de-listed.

Tours

Tours were conducted by marketing staff most trading-day mornings. The tours consisted of two parts: visitors would watch a short documentary about commodities futures and hard red winter wheat, then would be taken to the viewing gallery that overlooked the trading floor, where a marketing staff member would explain the trading process, prices on the board, and the importance of the commodities market.

References

External links

* {{Authority control Financial services companies established in 1856 Financial services companies established in 1876 Chambers of commerce in the United States Commodity exchanges in the United States Economy of Kansas City, Missouri Futures exchanges Options (finance) Organizations based in Kansas City, Missouri Organizations established in 1856 Organizations established in 1876 Tourist attractions in Kansas City, Missouri CME Group 1856 establishments in Missouri