MidAmerica Commodity Exchange

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The MidAmerica Commodity Exchange (Midam) was a Chicago-based futures exchange, offering a range of mini-size contracts. The exchange was shut down in 2004 and all of its contracts moved to the Chicago Board of Trade.[1]

History

The exchange traces its roots back to 1868, and was incorporated as the Chicago Open Board of Trade in 1880, assuming the MidAmerica name on Novembver 22, 1972.[2][3]

The Midam was founded in 1868 as Pudd's Exchange. In the 1880s, it registered and changed its name to something similar to the Chicago Board of Trade, i.e. the Chicago Open Board of Trade. Trading on the Pudds Exchange originated in the open air on the corner of Washington and LaSalle.[4]

Midam affiliated with the Chicago Board of Trade in 1986, but remained a separate legal entity and exchange.

Rice

In 1983, the Chicago Rice & Cotton Exchange, formerly the New Orleans Commodity Exchange, was renamed. In 1991, the MidAm was designated to trade rough rice futures and all open positions in CRCE rough rice futures were transferred to the MidAm.

On October 3, 1994, open positions in MidAm rough rice futures were transferred to the Chicago Board of Trade.

The MidAM acquire the Chicago Rice & Cotton Exchange in 1985.[5]

Location

The MidAmerica Commodity Exchange (MACE) was founded as "Pudd's Exchange" in a field on the corner of LaSalle and Washington streets in 1868.

In 1926, the MidAm move to 328-334 Sherman. In 1947, the exchange moved to 231 South Wells Street. Then, in 1958, it moved to the Fisher Building at 343 South Dearborn Street.

In 1974, after rebranding as the MidAmerica Commodity Exchange, it moved to 175 West Jackson on May 5. In 1982, the MidAm purchased the space at 444 West Jackson that formerly housed the Chicago Mercantile Exchange. The CME had moved into its new exchange building at 20 S. Wacker.

When the CBOT bought the MidAM, the exchange moved to the CBOT Building at 141 West Jackson in 1986 and was dissolved in 2003.[6]

Contract Size

The mini contracts were one-fifth the size of those on other exchanges, and included wheat, corn, oats, soybeans, live cattle, live hogs, silver, gold, platinum, soybean meal futures, options on gold, foreign currencies and other derivatives. Volumes reached 2.4m contracts in 2000, ranking 37th among global exchanges.

Membership

Midam, with lower membership prices than its bigger neighbors, the CBOT and CME, attracted newcomers to its trading floor, a number of whom became very successful (e.g., Richard Dennis and others) and went on to trade at other exchanges.[7]

References

  1. Trading Organizations - Designated Contract Markets (DCM). U.S. Commodity Futures Trading Commission.
  2. Commodity Trading Manual. CBOT.
  3. Main Categories of Commodities. CFTC.
  4. Chicago Board of Trade. Fonds.
  5. MidAmerica Commodity Exchange records. ArchiveGrid.org.
  6. UIC Library opens archives of historic commodity exchanges. UIC.edu.
  7. CBOT will shut door on MidAm. Chicago Tribune.