CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

The futures exchanges industry is ______.
A. concentrated with strong pricing power
B. concentrated with weak pricing power
C. fragmented with strong pricing power
Explanation: There is only one major futures exchange in the U.S.: the Chicago Mercantile Exchange.

User Contributed Comments 3

User Comment
dayenap Can someone please explain this?
edrei7 The question is in the context of the US market. There being only one major futures exchange, that doesn't only make the industry's market share concentrated on this exchange, its brokers, dealers also have the power over the fees and commissions.
fluffytato First of all, "futures" not "forwards" are only traded on exchanges.
Second, the question is asking whether the "futures exchange industry" not "futures trading" is concentrated with strong pricing power.
You need to log in first to add your comment.