Assignment Outline

Chicago Mercantile Exchange $($CME$)$ is the largest futures exchange in the United

States and the second largest exchange in the world for the trading of futures and

options on futures. CME Group is the world's leading and most diverse derivatives

marketplace offering the widest range of futures and options products for risk

management.

CME has four major product areas based on interest rates, stock indexes, foreign

exchange and commodities.

Required:

Give a brief background on the Bonds and Derivatives exchange market in

Zambia $($BaDEx$).$ Is it operational? If not, why?

Discuss the benefits of trading in commodity derivatives to the financial

markets and the economy of Zambia. Use agricultural and minerals as

examples.

Suppose the Lusaka Securities Exchange $($LuSE$)$ introduced the trading of

commodities futures and options on their exchange, how would this benefit

the users of derivatives in Zambia?