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
The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is a global 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, a ...
(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.
[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 Corporation. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide. Reuters is one of the largest news agencies in the world.
The agency was est ...
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 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
Bursa Malaysia is the stock exchange of 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 provides a full integration of transactions, offer ...
(BMD),
Dubai Mercantile Exchange (DME), Korea Exchange (KRX), and the
Minneapolis Grain Exchange (MGEX) provide access to market exposure around the world.
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".
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