Globex is an electronic trading platform, a trailblazer since its 1992 launch, utilized for trading derivatives like futures, options, and commodity contracts across various asset classes. Developed for the Chicago Mercantile Exchange (CME), CME Globex operates seamlessly, transcending geographic boundaries and time zones.
Fact: Globex trades represent approximately 90% of CME Group’s total trading volume. The platform is accessible from over 150 countries and foreign territories.
Key Benefits
- Pioneering Platform: Introduced in 1992, Globex revolutionized electronic trading for derivatives contracts.
- Around-the-Clock Access: Functions almost 24/7, from Sunday evening to late Friday afternoon.
- Diverse Products: Offers products uniquely traded on Globex alongside those traded through traditional open-outcry.
Experience the Continuously Active Marketplace of Globex
Globex offers an open-access marketplace nearly 24 hours a day, from Sunday evening to late Friday afternoon. This expansive operation period allows participants globally to trade and access essential trading data in real time.
Users need a CME Group clearing firm relationship and a CME Group-certified trading application to access Globex. CME Group encompasses the Chicago Mercantile Exchange (CME), along with key commodity exchanges such as Commodity Exchange, Inc. (COMEX), New York Mercantile Exchange (NYMEX), and Chicago Board of Trade (CBOT).
The session typically starts in the afternoon or evening, marking the beginning of the next trading day. For instance, orders placed during Monday’s evening session are dated and cleared on Tuesday. Brief breaks of 30 to 60 minutes occur between the close and reopening of the five daily sessions, depending on the asset class.
An Early Example of a CME Globex Terminal
17+ million
More than 17 million contracts are traded daily on Globex, on average.
The Development of Globex: A Pioneer in Electronic Trading
Globex’s inception took place in 1987, emerging as a solution for after-hours market coverage for futures and options trading. Officially launched on June 25, 1992, it utilized technology and infrastructure from Reuters, starting with three currency products and one Treasury note product. Globex quickly expanded its range, inventing new assets in the process.
Noteworthy introductions include the E-mini S&P 500 futures contract in 1997, destined solely for trading on Globex. Other significant “e-mini” contracts cover the FORTUNE E-50 Index, E-mini Currency, and the E-mini Nasdaq 100 contracts.
In 2000, CME Group’s open access policy allowed customers direct trading within the system, eliminating the need for brokers and significantly boosting business. In 2002, Globex’s average daily volume surpassed 1 million contracts, escalating past the physical pit volume for the first time in 2004 and reaching over 1 billion contracts by 2007. By its 20th anniversary in 2012, Globex processed 84% of CME Group’s total market volume electronically.
Globex now serves various sectors, from agriculture (Kansas City Board of Trade and Minneapolis Grain Exchange products in 2008) to energy, stock indices, foreign exchange, interest rates, metals, real estate, and even weather derivatives. Some products are exclusively traded on Globex, while others through open-outcry pits. }
Related Terms: Chicago Mercantile Exchange, derivatives, Commodity Exchange Inc., New York Mercantile Exchange, Chicago Board of Trade
References
- CME Group. “Daily Exchange Volume and Open Interest”.
- CME Group. “Twenty Years of CME Globex”.
