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The Chicago Board of Trade ('''CBOT''') , established in 1848 , is the world's oldest Futures And Options Exchange . More than 50 different Option s and Futures Contract s are traded by over 3,600 CBOT members through Open Outcry and ETrading . Volumes at the exchange in 2003 were a record breaking 454 million contracts. On 12 July 2007 , the CBOT merged with the CME and ceased to exist as an independent entity. HISTORY The concerns of U.S. Merchant s to ensure that there were buyers and sellers for Commodities have resulted into Forward Contract s to sell and buy commodities. Still, Credit Risk remained a serious problem. The CBOT took shape to provide a centralized location, where buyers and sellers may meet and negotiate and formalize forward contracts. In (CME). On 19 October 2005 , the Initial Public Offering (IPO) of 3,191,489 CBOT shares was priced at $54.00 (USD) per share. On its first day of trading the stock closed up +49% at $80.50 (USD) on the NYSE . In 2007 , the CBOT and the CME merged to form the CME Group. THE BUILDING See Also: Chicago Board of Trade Building Since 1930 , the Chicago Board of Trade has been operating out of 141 West Jackson Boulevard, Chicago. It is housed in a building designed by Architect s Holabird & Root that is 605 feet (184 m) tall, the tallest in Chicago until the Richard J. Daley Center superseded it in 1965. This Art Deco building incorporates sculptural work by Alvin Meyer and is capped by a 31 foot (9.5 m) tall statue of the Goddess Ceres in reference to the exchange's heritage as a Commodity market. Ceres is faceless because its sculptor, John Storrs , believed that the forty-five story building would be sufficiently taller than any other nearby structure and as a result that no one would be able to see the sculpture's face anyway. On . Today the Board of Trade Building is closely joined by numerous Skyscraper s in the heart of Chicago's busy Loop commercial neighborhood. THE PIT The Pit is a raised Octagon al structure where Open-outcry trading takes place. The CBOT trading floor contains many such pits. The steps up on the outside of the Octagon and the steps down on the inside give the pit something of the appearance of an amphitheater, and allow hundreds of traders to see and hear each other during trading hours. The importance of the pit and pit trading is emphasized by the use of a stylized pit as the logo of the CBOT. "The Pit" is also the title and subject of a classic novel ( by Frank Norris [http://www.gutenberg.org/etext/4382 . Trades are made in the pits by bidding or offering a price and quantity of contracts, depending on the intention to buy (bid) or sell (offer). This is generally done by using a physical representation of a trader's intentions with his hands. If a trader wants to buy ten contracts at a price of eight, for example, in the pit he would yell "8 for 10", stating price before quantity, and turn his hands inward toward his face, showing all 10 fingers. If the trader wants to sell five contracts at a price of eight, they would yell "5 at 8", stating quantity before price, and show one hand with the palm facing outward, showing 5 fingers. The combination of hand-signals and vocal representation between the way a trader expresses bids and offers is a protection against misinterpretation by other market participants. NEWS LINES
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