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Two Minneapolis Grain Exchange (MGEX or Exchange) memberships traded last Friday at the new record price of $250,000. Memberships, which are bought and sold in an auction-like format facilitated by Exchange staff, have increased dramatically in recent months — from $73,000 in January to the new record of $250,000.
“The rapid rise in membership values is a strong indicator of the potential the derivatives industry sees in the Exchange,” said Scott A. Cordes, Chairman of the MGEX Board of Directors. “We have had record growth in spring wheat trading volume and recently have seen renewed interest and activity in our five financially settled agricultural index contracts. This combined with exceptional performance in our building operations business has solidified the Exchange’s position within the industry. The market maker we now have providing bids and offers in our index contracts is also fueling additional growth for the Exchange.”
Memberships are trading at a record pace as interest in the Minneapolis Grain Exchange continues to grow. Five memberships traded in the first three days of August. “The MGEX has benefited from global recognition within the derivatives industry and general growth in the commodity markets” said Mark G. Bagan, President & CEO of the Exchange. “We are elated by the recent Exchange records and having our membership values reach the $250,000 mark, but we are even more excited when we look at the future potential for our business operations and Exchange growth.”
There are 399 outstanding memberships at the Minneapolis Grain Exchange. Membership trades occur when a current member accepts a bid to purchase from an interested party. The Exchange facilitates these trades between buyer and seller and has had 59 memberships trade hands since January 2007, outpacing 2006 membership trades by nearly 30 percent. Information on membership and current bids and offers is available at http://www.mgex.com/membership.html or by calling Adam Reinhart at +1 612-321-7158.
