Globex Trading System
The Globex Trading System which was introduced in 1992, was the first global electronic trading system designed to handle both futures trading and options trading. It was developed by the Chicago Mercantile Exchange (CME) along with other technology companies and it was designed to work with the existing open outcry system at the exchange to help improve efficiencies and extend the hours of trading. Today, Globex, or "CME Globex", offers trading approximately 23 hours a day, five days a week. [1]
History
In 1987 work began on the design of a new electronic system with the goal of enhancing futures trading at the CME. The system had gone through many iterations and enhancements throughout the next five years until 1992 when the first electronic futures trading began on the new system. When Globex was first launched, it ran on Reuters technology. [2] The system was also the first international electronic trading system to allow "off-hours trading in exchange contracts" [2] and because of this the system was known early on as a "Pre/Post Market Trading" system. [2]
System Overview
CME Globex is the first derivatives platform to offer global access to all major asset classes, equity indexes, agriculture, energy, metals, weather and real estate. Partnerships with other exchanges such as the Bursa Malaysia (BMD), Dubai Mercantile Exchange (DME), Korea Exchange (KRX), and the Minneapolis Grain Exchange (MGEX) provides easy access to market exposure around the world. [3]
The CME Globex system was the first and today still remains one of the fastest global electronic trading systems for futures and options trading. "Trades on the system are executed and confirmed to the customer with millisecond precision". [2] Average daily order volume continues to increase, while the response time for trades continues to decrease.
Through its advanced functionality, high-reliability and global connectivity, "it is now the world’s premier marketplace for derivatives trading" [3]. CME Globex provides access to the broadest array of futures and options products available on any exchange, virtually around the clock, from anywhere in the world. "In 2007, roughly 14.5 percent of the exchange's options contracts were electronically traded". [2]
Today the system is continuously enhanced to serve customers world-wide with high-speed, high-volume capacity, improved options capabilities and a range of new products. Functionality and capacity continue to grow dramatically to accommodate demand. [3]
- ^ Norton, Leslie P., "An Exchange's Embarrassment of Riches", Barron's, 19, April 2010 .
- ^ a b c d e "CME Globex", MarketsWiki, 27 September 2017.
- ^ a b c "CME Globex Reference Guide", CME Group