19 October 2017
visit www.avoka.com

CME delays Eagle launch; Globex hit by volume surge

11 July 2002  |  3157 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  |  5740 views  |  0 comments
Chicago Mercantile Exchange to launch new market data feed

Chicago Mercantile Exchange to launch new market data feed

03 July 2002  |  3311 views  |  0 comments
CME salutes electronic trading records

CME salutes electronic trading records

13 June 2002  |  2675 views  |  0 comments
OneChicago partners IBM for Web site launch

OneChicago partners IBM for Web site launch

05 June 2002  |  2973 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.innotribe.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15666 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8829 views comments | 16 tweets | 22 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7930 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7062 views comments | 9 tweets | 17 linkedin
Santander InnoVentures leads $6m funding round for Mexico's ePesosSantander InnoVentures leads $6m funding r...
6191 views comments | 6 tweets | 3 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job