Introducing the New York Board of Trade

By Amine Bouchentouf

Part of Investing in Commodities For Dummies Cheat Sheet

The New York Board of Trade (NYBOT) is one of the oldest exchanges in the United States and is the premier location for the trade of agricultural commodities. The NYBOT also offers futures contracts that track cotton, ethanol, and wood pulp (pulp is used to make paper), as well as products that track several financial futures, such as the euro (the currency), the New York Stock Exchange Composite Index, and the Reuters/Jefferies CRB Index.

(The NYBOT is also where the movie Trading Places, with Eddie Murphy and Dan Aykroyd, was shot. In the final scene of the movie, Murphy and Aykroyd corner the orange juice market and, in the process, wipe out Randolph and Mortimer Duke.)

As a sign of the times and the advent of electronic trading, in 2007, the ICE, an all-electronic trading platform, acquired the NYBOT. Although the ICE has integrated many of the commodities offered on the NYBOT with its electronic platform, many traders still refer to the original NYBOT commodities as ICE/NYBOT.