See how the world advances

 

Confidence to grow

As the world gets wealthier, the demand for food is soaring, while producers struggle to provide more supply.

This volatile situation poses some big opportunities — and challenges — for farmers and ranchers since a drought or a storm halfway across the world can disrupt markets. And if the producers overshoot demand, they could create a glut of supply.

Yet they don’t have the luxury of time so they must decide what, and how much, to plant months or years in advance, with nearly everything at stake. Choosing wisely can mean a successful year while choosing poorly can mean big losses.

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How do derivatives advance food security?

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Ian Goldin

• Former Vice President, World Bank
• Director, Oxford University’s Oxford Martin School

 

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Confidence to build

How do derivatives advance construction?

Jeff Jennings

• Managing Director of Investment Banking, Credit Suisse

Architects, city planners, property owners and construction companies can protect themselves from big jumps in commodity prices through copper, iron ore or oil futures, or even hedge against bad weather. Businesses can reduce interest rate and currency risk so they can focus on what they do best, bringing new products to market. And governments worldwide can upgrade their local infrastructure, confident they can get the raw materials they need at the prices they can afford.

By helping businesses and developers in these ways, CME Group gives them more confidence in their plans and projects.

With that confidence, developers can put more buildings in more places, and tomorrow's businesses can occupy them. And that's how progress is built.

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Confidence to invest

Every year, banks make loans totaling trillions of dollars. They’re not just funding projects—they’re funding progress.

Access to capital just might be the only thing standing in the way of a job-creating business expansion, a neighborhood revitalization, or the next wave of technological innovation.

Lenders need confidence in the loans they make, while businesses rely on consistent extension of credit to grow their operations.

Small and Medium Businesses:

• Contribute almost 51% of the U.S. GDP, or $7.2 trillion*
• Pay 44% of total U.S. private payroll
• Have generated 64% of net new jobs over the past 15 years

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How do derivatives advance investing?

Richard Prager

• Head of Global Trading, BlackRock

 

10-year Treasury Notes and 30-year Mortgage Rates, January to December, 2009 More information on this chart

 

Confidence to expand

How do derivatives advance global commerce?

 

As companies do more business globally, they face ever-greater currency risk and its consequences. Because an unexpected move in exchange rates can cut into profits, it becomes critically important for them to hedge their exposure to this risk.

Every day, CME Group helps global businesses achieve more consistent financial performance. With nearly $125 billion in notional value traded each day in CME Group futures and options on foreign currencies, companies can actively manage their foreign currency exposure.

They can lock in their profits and transact with confidence, knowing that the deal they agree to today will provide necessary protection against future price movements.

 

http://www.cmegroup.com/advance/#/build-1