science

New York Cotton Exchange

New York Cotton Exchange is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand New York Cotton Exchange rather than just read about it. In short: The New York Cotton Exchange (NYCE) is a commodities exchange founded in 1870 by a group of one hundred cotton brokers and merchants in New York City. In 1998, the New York Board of Trade (NYBOT) became the parent company of the New York Cotton Exchange, and it is now owned by IntercontinentalExchange (ICE).

Key takeaways

New York Cotton Exchange belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect New York Cotton Exchange to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of New York Cotton Exchange from memory before moving on to harder problems.

Reference excerpt

The New York Cotton Exchange (NYCE) is a commodities exchange founded in 1870 by a group of one hundred cotton brokers and merchants in New York City. In 1998, the New York Board of Trade (NYBOT) became the parent company of the New York Cotton Exchange, and it is now owned by IntercontinentalExchange (ICE). The NYCE had its first permanent headquarters at 1 Hanover Square from 1872 to 1885, though it remained on Hanover Square, Manhattan, for over a century. Since 2003, its headquarters and trading facility have been in One North End Avenue.

History

Formation

The NYCE was founded in 1870 by a group of one hundred cotton brokers and merchants, and is the oldest commodities exchange in the city. In the spring and summer of 1870, a group of cotton merchants and brokers doing business in New York began planning an improvement on their "loose and informal association of persons active in the cotton trade," spending weeks preparing to create an association that was governed by rules and "equally fair to all" in its cotton dealings. In the middle of August 1870, the forming organization voted for officers and managers, and the Exchange was organized officially on September 7, 1870. Founding president was Stephen D. Harrison. The Exchange earned a charter from the State of New York and its legislature on April 8, 1871. Its first permanent headquarters was 1 Hanover Square (later known as India House) in New York City. The NYCE moved to 1 Hanover Square on May 4, 1872. Well into the 20th century, cotton was a leading American commodity for both export and domestic consumption. In that era, other major exchanges existed in the United States. Several were founded within a few years of the founding of New York Cotton Exchange: the New Orleans Cotton Exchange, the Mobile Cotton Exchange, the Memphis Cotton Exchange, and the Savannah Cotton Exchange. Another important exchange was the Liverpool Cotton Exchange in Liverpool, England. The NYCE and the Memphis Cotton Exchange are the only organizations of that group still active today.

Cotton Year Book and subsidiaries Annually until 1958, the NYCE published the Cotton Year Book, which contained the year's statistics on the cotton industry. Over the years, the NYCE created various subsidiaries to trade non-cotton contracts, including the Wool Associates, the Citrus Associates, the Tomato Products Associates, and the Financial Instruments Exchange (FINEX). The exchange diversified its product line over the years to also deal in wool and orange juice futures. In 1985 the NYCE began dealing in financial futures and options.

Subsidiary of ICE In 1998, the New York Board of Trade (NYBOT) became the parent company of both the New York Cotton Exchange and the Coffee, Sugar and Cocoa Exchange (founded 1882). It is now owned by IntercontinentalExchange (ICE). The New York Cotton Exchange was a tenant on the 8th floor of 4 World Trade Center until September 11, 2001. Following the terrorist attacks that day, it had to relocate to temporary facilities in Long Island City that had been set up as an emergency backup location following the 1993 World Trade Center bombing. Since 2003, its headquarters and trading facility have been in the New York Mercantile Exchange Building in lower Manhattan.

See also Cotton factor Mobile Cotton Exchange, the third cotton exchange in the U.S., founded after New Orleans Exchange Memphis Cotton Exchange, founded 1874 Cotton production in the United States

References

External links

New York Board of Trade

Illustrations

Worked examples

Example 1 — a first encounter with New York Cotton Exchange

Start with the simplest possible case. Write down what New York Cotton Exchange claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to New York Cotton Exchange before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about New York Cotton Exchange ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of New York Cotton Exchange

In research: New York Cotton Exchange appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses New York Cotton Exchange in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: New York Cotton Exchange is common in secondary-school and first-year university syllabi. It links to neighbouring topics 1870 establishments in New York (state), Agricultural organizations based in New York (state), Battery Park City, so understanding it makes those chapters shorter.
In everyday life: Look for New York Cotton Exchange outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study New York Cotton Exchange in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what New York Cotton Exchange means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain New York Cotton Exchange out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is New York Cotton Exchange in simple terms?

Why does New York Cotton Exchange matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study New York Cotton Exchange?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on New York Cotton Exchange.