Kansas City Board of Trade
| Company type | Commodity futures and options exchange |
|---|---|
| Industry | Financial services |
| Founded | 1856 |
| Founder | Edward H. Allen |
| Defunct | 2015 |
| Fate | Acquired by CME Group; trading floor closed |
| Headquarters | Kansas City , United States |
Area served | United States |
| Products | Futures contracts, options (notably hard red winter wheat and Value Line futures) |
| Parent | CME Group (from 2012) |
The Kansas City Board of Trade (KCBT) functioned as a U.S.-based commodity futures and options exchange overseen by the Commodity Futures Trading Commission. It was primarily recognized for trading contracts in hard-red winter wheat and maintained its headquarters at 4800 Main Street, Kansas City, Missouri.
On October 17, 2012, the CME Group revealed its purchase of KCBT for $126 million in cash. Following the acquisition, the Kansas City trading floor continued operations for a minimum of six months, while KCBT traders provided advisory support to CME for a period of three years. The trading activities were merged with Chicago’s facilities by June 2013, and the Kansas City floor officially closed on July 2, 2015.
History
Established in 1856 originally as Kansas City's chamber of commerce and formally incorporated in 1876, the exchange’s founders included Edward H. Allen. Its first location was at 8th and Wyandotte Streets, housed in a building designed by Chicago architects Burnham & Root, with local architect Walter C. Root representing the project. The exchange moved to a new site at 10th and Wyandotte Streets in 1925 before settling at its final location on the Country Club Plaza at 48th and Main Streets in 1966.
Operations
The exchange’s core activity involved trading futures contracts on hard red winter wheat, an essential ingredient in bread production, along with associated options. Today, these hard red winter wheat contracts are traded on the Chicago Board of Trade Designated Contract Market (DCM) and generally hold a price premium over soft red winter wheat due to their higher nutritional content. Initially, ownership transfers of both futures and options were conducted through an open outcry system; this process later transitioned to electronic trading platforms.
In 1982, KCBT introduced Value Line futures, marking it as the pioneer in offering stock index futures contracts. Options on these Value Line futures were launched in 1992. By December 12, 2004, trading of Value Line futures had moved entirely to electronic systems before eventually being removed from the listings.
Tours
On most mornings during trading days, marketing personnel provided guided tours that included a short documentary explaining commodities futures and the significance of hard red winter wheat. Visitors were then invited to observe the trading floor from an elevated gallery where staff elaborated on trading mechanisms, price display boards, and the broader importance of commodities markets.
See also
- List of futures exchanges
- List of traded commodities
- Value Line Composite Index, which was traded on the Kansas City Board of Trade futures market
External links
- Articles with short description
- Financial services companies established in 1856
- Financial services companies established in 1876
- Chambers of commerce in the United States
- Commodity exchanges in the United States
- Economy of Kansas City, Missouri
- Futures exchanges
- Options (finance)
- Organizations based in Kansas City, Missouri
- Organizations established in 1856
- Organizations established in 1876
- Tourist attractions in Kansas City, Missouri
- CME Group
- 1856 establishments in Missouri