The Globex Trading System is an

electronic trading platform In finance, an electronic trading platform, also known as an online trading platform, is a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Various financial products ...

for trading both

futures contract In finance, a futures contract (sometimes called futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The item tr ...

s and options contracts that is operated by the

Chicago Mercantile Exchange The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is an American derivatives marketplace based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board ...

(CME). It was introduced in 1992 and was the first global electronic trading platform designed to handle trading of

financial derivatives In finance, a derivative is a contract between a buyer and a seller. The derivative can take various forms, depending on the transaction, but every derivative has the following four elements: # an item (the "underlier") that can or must be bou ...

using

electronic trading Electronic trading, sometimes called e-trading, is the buying and selling of stocks, bonds, foreign currencies, financial derivatives, cryptocurrencies, and other financial instruments online. This is typically done using electronic trading plat ...

. It was developed by the

(CME) along with other technology companies and it was designed to work with the existing

open outcry Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of Hand signaling (stock market), hand signals to transfer information pri ...

system at the exchange to help improve efficiencies and extend the hours of trading. Globex, or "CME Globex", offers trading approximately 23 hours a day, five days a week.Norton, Leslie P.
"An Exchange's Embarrassment of Riches"
Barron's, 19, April 2010 .

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 Reuters ( ) is a news agency owned by Thomson Reuters. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide writing in 16 languages. Reuters is one of the largest news agencies in the world. The agency ...

technology."CME Globex"
MarketsWiki, 27 September 2017. The system was also the first international electronic trading system to allow "off-hours trading in exchange contracts" and because of this the system was known early on as a "Pre/Post Market Trading" system.

System overview

CME Globex was 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 Bursa Malaysia (English: Malaysian Bourses or Malaysia Exchange) is the stock exchange in Malaysia. It is one of the largest bourses in ASEAN. It is based in Kuala Lumpur and was previously known as the Kuala Lumpur Stock Exchange (KLSE). It p ...

(BMD),

Dubai Mercantile Exchange The Dubai Mercantile Exchange (DME) is a commodity exchange based in Dubai currently listing its flagship futures contract, DME Oman Crude Oil Futures Contract (OQD). Launched in 2007, the DME aims to become the crude oil pricing benchmark for ...

(DME), Korea Exchange (KRX), and the

Minneapolis Grain Exchange The Minneapolis Grain Exchange (MGEX) is a commodities and futures exchange of grain products. It was formed in 1881 in Minneapolis, Minnesota, United States as a regional cash commodity market, marketplace to promote fair trade and to prevent t ...

(MGEX) provide access to market exposure around the world. The CME Globex system is 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". Average daily order volume continues to increase, while the response time for trades continues to decrease. 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".

References

{{Reflist Electronic trading systems