Contract market,

Definition of Contract market:

1. An exchange that is registered with the Commodity Futures Trading Commission (CFTC) to trade specific commodity or option contracts. See Commodity Futures Exchange; Derivatives.

2. 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). Most large futures markets also provide clearing and settlement functions.

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

How to use Contract market in a sentence?

1. 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).
2. In the interest of maintaining liquidity, contracts trading on a contract market have standardized sizes, expiration dates, and, for options, strike prices, which contrasts with over-the-counter (OTC) contracts.
3. Contract market, or designated contract market, is a registered exchange where commodities and option contracts are traded and its core function is to ensure fair and orderly trading, financial controls, and the efficient dissemination of trade price information.