Chicago Mercantile Exchange Inc. (CME), the largest U.S. futures exchange and largest clearing organization for futures in the world, announced today that it has officially cleared one billion contracts for the calendar year as of the end of trading on Friday, September 24.
This is the first time the exchange's clearing house has achieved this milestone. Last year, CME cleared a total of 640 million contracts.
Adding to overall clearing volume this year has been the addition of the Chicago Board of Trade(R) (CBOT) as a clearing customer. On January 2, 2004, CME began providing clearing and settlement services for all CBOT products. As a result, CME today clears approximately 85 percent of U.S. futures and options on futures volume.
"Reaching this milestone is significant as electronic trading continues to grow and CME's ability to provide clearing services results in significant efficiencies for our valued customers," said CME Chairman Terry Duffy. "Our clearing processing agreement with the CBOT has benefited both exchanges, our customers and our clearing firm partners around the world."
"Since we pioneered the concept of electronic futures trading in 1987, CME has been a continued leader in technology innovation, including clearing," said CME Chief Executive Officer Craig Donohue. "CME's comprehensive capabilities today - as well as the products and services we are working to develop for tomorrow - continue to provide our customers around the world with speed, transparency and market integrity for our benchmark products."
In addition, CME expects trading on GLOBEX(R), CME's electronic trading platform, to surpass one billion electronic trades in late October. GLOBEX was launched in June 1992.
In the month of August, 62 percent of trading volume at CME occurred via electronic trading, an increase from only 15 percent in the year 2000. To date, more than $300 trillion in notional value has been traded and cleared through CME, compared to $333 trillion in 2003.