What is a contract market?

The core function of a contract market is to ensure fair and orderly trading, financial controls, and the efficient dissemination of trade price information. Contract markets must register with the overseeing regulatory authority, such as the Commodity Futures Trading Commission (CFTC), pursuant to Section 5 of the Commodity Exchange Act (CEA).

What is a designated contract market?

Contract market, or designated contract market, is a registered exchange where commodities and options contracts are traded. It is sometimes known as a "designated exchange." A contract market is a registered exchange where derivatives contracts are traded.

What is a designated contract market (DCM)?

A contract market, or designated contract market (DCM) is any board of trade (exchange) designated to trade a specific options or futures contracts. It must register with the overseeing regulatory authority, most notably the Commodity Futures Trading Commission (CFTC), pursuant to Section 5 of the Commodity Exchange Act (CEA).