Commodity Exchange Inc. (COMEX)

Commodity Exchange Inc. (COMEX) was founded in New York in 1933. It became the leading gold futures and options exchange after its gold futures contract was launched on 31 December 1974 – the date after which Americans were again permitted to hold gold after more than 40 years. Options on gold futures were then launched in 1982. COMEX also trades silver.

Its precious metals volume exceeds that of all other futures exchanges put together and it attracts world-wide participation, with many traders in Europe, the Middle East and East Asia remaining in their offices until COMEX closes. This gives COMEX unique liquidity, which in turn is much of the reason for its success. Trading hours reflect this and the exchange has opened progressively earlier to suit overseas clients.

Trading hours futures and options: 8.20 am to 2.30 pm New York time.

After hours futures trading is also available on the NYMEX ACCESS SM electronic trading system, beginning at 4.00 pm on Monday to Thursday and concluding at 7.00 am the following day. On Sundays the electronic session begins at 7.00 pm. All times are New York time.

In 1994, COMEX merged with the New York Mercantile Exchange (NYMEX) and is officially the COMEX division of NYMEX, but it is always referred to as COMEX .

COMEX Futures

• The COMEX gold futures contract was launched on 31 December 1974.
• The COMEX gold futures contract is based on 100 ounces of gold.
• Prices are quoted in multiples of ten cents per ounce, or $10 per contract.
• COMEX futures are listed on the current calendar month and the next two months and every February, April, June, August, October and December in a 23 month period.
• The June and December contracts are listed out to 60 months to provide expanded trading opportunities for hedgers and speculators.
• Last day of trading for a gold futures contract is the third last business day of the delivery month.
• Delivery is made in registered depository receipts issued by exchange-approved depositories in New York.
• Deliverable gold must be cast in one 100-ounce or three one kilobars by an exchange-approved refiner and assayed at no less than 995 fineness.
• Turnover on the exchange is usually eight to nine million contracts annually, but in 1999 rose to 9.58 million.
• Open Interest is published daily. It indicates the number of contracts which have not been fulfilled, either by making or taking delivery or by liquidation. The level of open interest is an important signpost to both liquidity and the activity in a given trading month.

COMEX Options

• COMEX launched options on gold futures in 1982.
• The option provides the right to buy (call) or sell (put) a COMEX gold futures contract at the stated price on or before the expiration date. The contract is based on 100 ounces of gold.
• Trading is conducted in the nearest six of the following contract months: February, April, June, August, October and December.
• Additional contract months of January, March, May, July, September and November are listed for trading a period of two months.
• A 24-month option is added on a June-December cycle.
• Each option is an American option, which can be exercised at any time up to expiration.
• Expiration is on the second Friday of the month prior to the delivery month of the underlying futures contract.
• On the first trading day of any option contract month 13 strike prices are listed for each put and call. Strike price increments are $10 for futures prices below $500, $20 for prices between $500 and $1,000 and $50 for prices above $1,000. New strike prices are added in accordance with futures price movements.
• Turnover was usually one to two million contracts annually through the 1990s, but reached 2.8 million in 1999.