What Is COMEX In Financial Trading?

What Is COMEX In Financial Trading?

Futures and options trading is a popular strategy for market participants to hedge existing positions and speculate the market. 

Millions of traders enter the market every day and futures/options contracts are traded on major exchanges, such as the Chicago Mercantile Exchange, or CME. 

COMEX, which stands for the "Commodity Exchange," is a division of the Chicago Mercantile Exchange. It is one of the world's leading commodity futures and options trading platforms.

The primary focus of COMEX is precious metals, such as gold, silver, palladium, etc. 

COMEX is a popular futures exchange that lists some of the most in-demand commodities on the market. 

Traders can easily access COMEX via their brokerage accounts. The exchange was initially founded in 1933 and was acquired by the New York Mercantile Exchange (NYMEX) in 1994 and, in turn, became part of the CME Group in 2008 when CME acquired NYMEX Holdings. 

If you are a beginner futures trader and would like to know more about COMEX, this Investfox guide is for you. 

Things To Know More About COMEX

COMEX holds an important place in the U.S. commodities market as it is the most popular exchange for precious metals futures. 

COMEX contracts have standardized specifications, including contract size, delivery months, and minimum price fluctuations. These specifications ensure transparency and uniformity in trading, making it easier for market participants to manage their trades. 

COMEX provides a platform for market participants, including producers, consumers, and investors, to hedge against price fluctuations. For instance, gold miners can use COMEX contracts to lock in prices for their production.

Commodities Traded At COMEX

COMEX primarily specializes in the trading of commodity futures and options contracts. While it offers a variety of commodities, it is renowned for its focus on precious metals, including:

  • Gold: Gold futures contracts are among the most actively traded commodities on COMEX. The exchange offers futures contracts for gold with varying specifications, allowing market participants to trade and manage risk associated with the price of gold. These contracts play a significant role in establishing global gold prices
  • Silver: Silver futures contracts are also widely traded on COMEX. These contracts provide a means for market participants to speculate on and hedge against changes in the price of silver. The COMEX silver futures are considered benchmarks for global silver prices
  • Copper: While not a precious metal, COMEX also offers futures contracts for copper. Copper is an important industrial metal used in various applications, including construction and electronics. The exchange's copper futures contracts allow market participants to engage in price discovery and risk management related to copper prices

Global Impact

The price movements on COMEX have global implications, affecting not only futures markets but also the physical markets for precious metals. These prices are referenced by industries worldwide.

The performance of commodities futures listed on COMEX is followed closely by traders around the world, especially by large mining companies as a means to hedge against the price fluctuations of the precious metals they are mining. 


As part of the CME Group, COMEX is subject to rigorous regulatory oversight to maintain market integrity. 

The exchange enforces rules and regulations designed to protect market participants and ensure fair and transparent trading.

COMEX is regulated by the Commodity Futures Trading Commission (CFTC), which is a federal agency responsible for overseeing commodity and futures markets.

The CFTC enforces rules and regulations that govern trading, reporting, and risk management on exchanges.

COMEX is also subject to regulations from FINRA, which ensures that broker-dealers comply with regulations related to customer protection and market integrity.

Furthermore, the CME Group upholds an internal set of rules and regulations. These rules cover trading procedures, membership requirements, disciplinary actions, and other operational aspects of the exchange.

Key Takeaways From What Is COMEX In Financial Trading

  • COMEX is a major commodities exchange and a part of the CME Group, which also owns NYMEX and CBOT
  • COMEX is primarily focused on precious metals trading, such as gold and silver, as well as copper
  • CFTC and FINRA regulate COMEX to ensure financial security and legal compliance of brokers and market participants
  • Traders, especially mining companies, closely follow precious metals listed on COMEX to hedge their portfolios against price fluctuations


What is the COMEX exchange?

The COMEX (Commodity Exchange) is a division of the Chicago Mercantile Exchange (CME Group) specializing in commodity futures and options trading. It's known for trading precious metals, including gold and silver contracts, serving as a global benchmark for their prices.

What is traded on COMEX?

COMEX primarily trades precious metals, including gold and silver, which serve as benchmark contracts for global prices. Additionally, it offers other metal futures and options, such as copper, for price discovery and risk management.

Who owns the COMEX exchange?

The COMEX exchange, which is a division of the Chicago Mercantile Exchange (CME Group), is owned by CME Group, Inc. CME Group is one of the world's largest and most influential financial derivatives exchange operators.