21 February 2018
visit www.ebaday.com

CME delays Eagle launch; Globex hit by volume surge

11 July 2002  |  3195 views  |  0 Mouse

The Chicago Mercantile Exchange is to defer implementation of its Eagle Project for electronic calendar spread trading until October following the failure of the exchange's Globex e-trading platform to cope with a recent surge in volume.

The breakdowns in the Globex platform are an embarrassment for the Chicago exchange which has been boasting of record electronic trading volumes in the run-up to its forthcoming IPO.

Volumes over Globex have risen from more than 16 million contracts in the first quarter of 2001 to nearly 43 million in the second quarter of 2002. In the last month, there have been three occurrences when more than one million CME contracts were traded on the platform in a single day.

The exchange says that during the trading surge there were "several instances of connectivity problems or erroneous reports" that affected some users of the platform. CME claims to have identified the causes of the problems and either has corrected or is in the process of addressing them.

The Eagle facility, which was scheduled to go live next week, will make it possible for the first time to trade calendar spreads electronically over Globex. Calendar spreads are a popular and complex trading strategy in Eurodollar futures that currently can be executed only through open outcry trading.

The decision to defer Eagle's implementation date will mean the exchange can devote additional resources to ensure that Globex can operate in a high volume environment, says Terry Duffy, CME chairman.

He states: "Given the recent record volumes and the resulting stresses to the system, it is imperative that we prioritise our efforts to first ensure the continuous performance and efficiency of the platform before attempting to expand its use with a new major application."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CBOT and Eurex hammer out new a/c/e agreement

CBOT and Eurex hammer out new a/c/e agreement

11 July 2002  |  5786 views  |  0 comments
Chicago Mercantile Exchange to launch new market data feed

Chicago Mercantile Exchange to launch new market data feed

03 July 2002  |  3350 views  |  0 comments
CME salutes electronic trading records

CME salutes electronic trading records

13 June 2002  |  2708 views  |  0 comments
OneChicago partners IBM for Web site launch

OneChicago partners IBM for Web site launch

05 June 2002  |  3003 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
Register for the webinarvisit www.swift.com/your-needs/instant-paymentsVisit http://info.nice.com

Top topics

Most viewed Most shared
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
10128 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
9719 views 10 comments | 22 tweets | 26 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
8481 views comments | 13 tweets | 12 linkedin
BBVA-backed digital banking startup targets gig economy workersBBVA-backed digital banking startup target...
7154 views comments | 8 tweets | 12 linkedin
hands typing furiouslyMaking Customer Experience Your Business
6869 views 0 | 7 tweets | 5 linkedin

Featured job

Competitive base + commission + benefits
London, UK

Find your next job