| Commodity exchanges are trading organisations that | | | | home to the energy, platinum, and palladium markets, |
| engage in transactions that involve the buying, and | | | | and the COMEX Division, where metals like gold, |
| selling of futures related to the commodities market. | | | | silver, and copper and the FTSE 100 index options |
| The commodity exchange maintains a physical | | | | are traded. |
| location where trading activity takes place. | | | | The COMEX gold futures contract was launched on |
| Nowadays, a commodity exchange will also provide | | | | 31 December 1974, and is based on 100 ounces of |
| online access to trading activity, including the ability to | | | | gold. All prices are quoted in multiples of ten cents |
| trade on the exchange by electronic means. | | | | per ounce. COMEX futures are listed on the present |
| One of the most well known commodity exchanges | | | | calendar month. All the Deliveries are made in |
| in the world today is Commodity Exchange, Inc. of | | | | registered depository receipts issued by |
| New York. It is located in the Manhattan area of New | | | | exchange-approved depositories in New York. |
| York City. It is known simply as COMEX; the | | | | Turnover of COMEX is usually eight to nine million |
| particular commodity exchange has been around for | | | | contracts annually, but in 1999 rose to 9.58 million. |
| decades, and has a solid reputation throughout the | | | | The option provides the right to buy or sell a COMEX |
| investment community. COMEX is particularly well | | | | gold futures contract at the stated price on, or |
| known for metal futures, although it also engages in | | | | before the expiration date. Usually, contracts are |
| other commodity options trading. | | | | based on 100 ounces of gold. Each option is an |
| COMEX was first established in New York in 1933. | | | | American option, which can be exercised at any time |
| During the first forty years of survival, COMEX | | | | before expiration date. On the first trading day of |
| focused on trading copper, silver, and aluminum. In | | | | any option, contract month 13 strike prices are listed |
| 1974, changes in laws in the United States made it | | | | for each contract. New strike prices are added in |
| possible for US investors once again to hold gold as | | | | accordance to futures price fluctuations. The |
| an investment, and asset; this began to change. On | | | | turnover from options was usually one to two million |
| 31 December 1974, the New York Commodity | | | | contracts annually through the 1990s, but in 1999 |
| Exchange launched its first gold futures contract. | | | | reached 2.8 million. |
| Options on gold futures were added later in 1982. | | | | Now a division of New York Mercantile Exchange, |
| During 1980s, COMEX, and the New York Mercantile | | | | formerly known as the Commodity Exchange, |
| Exchange began to discuss the possibility of a | | | | COMEX is the leading U.S market for metals futures, |
| merger. The two exchanges officially became a single | | | | and options of trading. COMEX has adjusted the |
| unit on 3 August 1994. Although, NYMEX fully own | | | | hours of operation to more accurately reflect the |
| and operate COMEX, its futures contracts are still | | | | world wide nature of the client base, and open earlier |
| functionally listed as a separate exchange. | | | | in the day in order to accommodate investors in a |
| Now in New York exchange, trading is conducted | | | | wider range of times zones around the world. |
| through two divisions: the NYMEX Division, which is | | | | |