Abstract:
In this paper we will discuss about the New York Board of Trade (NYBOT) briefly. It facilitates mainly the physical commodity futures. The NYBOT formed by the merger between the New York Cotton Exchange and the Coffee, Cocoa and Sugar Exchange. In 2006, the New York Board of Trade became a subsidiary of the Intercontinental Exchange. The NYBOT signed in a lease agreement with the New York Mercantile Exchange.
The New York Board of Trade (NYBOT), currently a division of the Intercontinental Exchange, is basically an exchange for the physical commodity futures. It is based in the New York City.
The NYBOT was founded in 1870. Initially it was known to all as the New York Cotton Exchange. In 1998, the New York Cotton Exchange merged with the Coffee, Cocoa and Sugar Exchange and the new entity was named as the New York Board of Trade.
- Before the merger, the NYBOT was a private body. It is now supervised by the Commodity Futures Trading Commission (CFTC) which works independently under the US government.
- The companies who want to trade on the New York Board of Trade has to send their own independent mediators or brokers.
- In 2003, a lease agreement had been done between NYBOT and the New York Mercantile Exchange. The main aim behind this step was to enter into the World Financial Center headquarters. However, the original head quarter of NYOBT got destroyed due to the 9/11 attack.
- The New York Board of Trade launched its futures contracts for ethanol in 2004. Ethanol is a popular and environment friendly fuel which will play a big role in the near future due to the present energy crisis.
- In 2006, the New York Board of Trade became a part of the Intercontinental Exchange. The whole deal was finished in January 2007.
- The NYBOT is presently paying almost 5 million dollars every year as rent for the above mentioned lease agreement.
