CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.
Products Traded Through CME Group:
The fee schedule for CME Group products is available here. This information is not to be construed as an offer to sell or a solicitation or an offer to buy commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but it is not necessarily all inclusive and is not guaranteed as to the accuracy and is not to be construed as representation by Advantage.
The risk of trading futures and options can be substantial. Globex trades constitute 90 percent of CME Group's total volume — nine out of every 10 trades, in other words. The platform offers access from more than countries and foreign territories. Globex is an open-access marketplace, operating nearly 24 hours a day, from Sunday evening through late Friday afternoon, which allows participants to directly trade and view orders, prices, and other data in real time.
The start of the CME Globex session, which usually occurs in the afternoon or evening, generally marks the beginning of the next trading day. For example, orders entered during Monday's evening session are dated for and cleared on Tuesday. There are brief 30 to minute breaks, depending on the asset class, in between the close and re-opening of each of the five daily sessions. More than 17 million contracts trade daily on Globex, on average.
It began with three currency and one Treasury note products, but quickly expanded into other assets — and even invented some. Globex is partnered with other global exchanges including the Dubai Mercantile Exchange and the Korea Exchange. CME Group instituted an open access policy for Globex in , allowing customers to trade directly in the system, without having to go through a broker. As a result, business soared: In , the Globex average daily volume exceeded 1 million contracts for the first time, and in , Globex volume exceeded physical pit volume for the first time.
CME Launches Trio of FX Analytics Tools - Traders Magazine
Notably, marked the first year the system's volume exceeded 1 billion contracts. Globex is now also a site for trading in assets in the sectors of agriculture in , the Kansas City Board of Trade and Minneapolis Grain Exchange moved their products to it , energy, stock indices, foreign exchange , interest rates, metals, real estate, and even the weather. Some futures and options products are traded solely on Globex, while others are traded in the physical pits — via open-outcry — as well.
CME Group. Financial Futures Trading.
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Day Trading. Your Privacy Rights. On the surface, the alignment of demand and supply for the contracts traded on the leading electronic venue for standardised, vanilla FX options instruments can be interpreted as appetite by market participants to gravitate toward an EU- and US-regulated entity — CME Globex is registered with the CFTC as a SEF — to automate the hedging of risk exposure in the primary FX market.
Tradable Symbols
However, another argument could be made suggesting that the products traded in volume on CME Globex were standardised by broker-dealers so that they could be more easily dealt electronically rather than via voice OTC. This is not to say though that non-vanilla FX options are ripe for standardisation as well; we believe that there will always be a distinct class of FX options products — crosscurrency swaps or dual-currency deposits, for example — that all broker-dealers must voice price and which can only be dealt and processed OTC.
Nevertheless, potential exists in the future for broker-dealers to co-opt the characteristics of some emerging D2C FX options trading venue offerings into their SDP architecture, offering buyside clients specific capabilities to structure and test the viability of complex or exotic FX options contracts using advanced pre-trade analytics accessed within an SDP. But, for the time being, the sellside FX options dealing space and the market structures surrounding it remain within a transitionary phase.
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