Coffee, Sugar and Cocoa Exchange - CSCE

Categories: Econ, Banking

Oh yeah, it is as good as it sounds. Well...was.

The Coffee, Sugar and Cocoa Exchange (CSCE) was the sweetest futures trading market around, at least until 2004 when it merged with the New York Cotton Exchange, which became the New York Board of Trade. In 2007, it was bought by the Intercontinental Exchange (ICE), which is where futures and options can be traded today.

The CSCE started forever ago in 1882 with just coffee, adding sugar in 1914 and cocoa in 1979. Why bother with futures trading in 1882? Coffee importers relied on these futures to protect themselves from large changes in prices of imported coffee that they relied on. Good thing, too, or else there could’ve been a bottleneck of coffee imports to the U.S. (nobody needs to see that).

Find other enlightening terms in Shmoop Finance Genius Bar(f)