Globex

Posted in Finance, Accounting and Economics Terms, Total Reads: 230
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Definition: Globex

Globex is also referred to as Chicago Mercantile Exchange Globex or CME Globex. It was the first global electronic trading platform introduced in the year 1992. It was mainly started to improve the trading efficiency in the era of open outcry system. This trading platform forms an integral part of Chicago Mercantile Exchange which deals largely in commodity futures, interest rate swaps and various others derivative instruments.


It offers global connectivity for electronic trading for almost 23 hours in a day during the five trading days. On this platform, starting of each trading day is done conducting an afternoon opening session. Hence, this platform is not restricted by physical borders or various different time zones spread across the world. It is basically used for trading in futures and options and derivative contracts. This platform offers a wide range of products and it also varies across different asset classes. As of now, it is one of the fastest trading platforms to trade in futures and options. Its other advantages include high reliability, flexibility, seamless connectivity and also now one of the world’s most premium marketplaces for trading in derivatives. This platform also provides risk management tools to manage risks of its customers. It also helps its clients in technical documentation and other client assessment tools. After 2010, the trade execution time on CME Globex reduced from 127 milliseconds to just 7 milliseconds indicating that it is one of the most technologically enhanced electronic trading platforms in the world.


The following are the main products of the CME Globex:

• Side by Side: This product contracts trade via open outcry mechanism for some portion of the day side by side or simultaneously.

• Electronic only: It contracts trade only electronically

• After-hours Electronic: This product starts contracting the trade when the open outcry mechanism stops.

 

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