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Globex
ON-LINE TRADING LESSON
Trading futures and options involves risk and is
not suitable for everyone.
On-Line Trading Lessons
Courtesy of the Chicago Mercantile Exchange
Lesson 15 --
GLOBEX
Overview
The GLOBEX Trading System is an international, automated, order entry and
matching system operated by Reuters for use the Chicago Mercantile Exchange(CME),
the Marche a Terme International de France (MATIF) and other exchanges that may
join the system. GLOBEX links hundreds of terminals together into an instantly
interactive, world-wide network.
GLOBEX is widely recognized as a user-friendly method of extended-hours trading.
It facilitates a 23-hour trading day for CME futures and options; trading on the
system begins shortly after, and ends shortly before, Regular Trading Hours.
GLOBEX trading is backed by the experience, integrity and Clearing House
strength of the CME, which has the largest open interest of any futures exchange
in the world.
GLOBEX is a marketplace where risk managers can easily and quickly adjust their
clients’ portfolios. It allows all participants equal access and nearly
continuous price discovery. For example, GLOBEX provides the ability to trade
S&P 500 futures contract before the cash market opens. Thus offering an
efficient means of hedging portfolio risk.
The CME lists its major financial futures and options contracts - some of the
most liquid in the word - for trading on GLOBEX. Every CME financial product
group is represented: currencies, interest rates, and indices. Cross-exchange
trading also is available, enabling members of one exchange to enter orders
directly through GLOBEX terminals for the products listed by another exchange.
The GLOBEX network currently extends to three major time zones, covering 12
financial centers (new locations may be added based on user demand):
Bermuda
Boca Raton
Chicago
Geneva
Hamburg
Hong Kong
London
New York
Paris
Singapore
Tokyo
Zurich
More than 420 GLOBEX terminals are now in operation, up from 320 terminals in mid-1994. No matter where a GLOBEX terminal is located, traders are ensured a level playing field and an average three-second or better response time.
