Definition of 'Globex'
Globex is an electronic trading platform used for derivative, futures, and commodity contracts. Traders also often use the term globex to mean the Overnight Session of the market. This is because after the pits have closed the only place you can trade the market is on Globex. Also, in some markets, globex used to be switched off while the pit was open so the globex market for those products was synonymous with the overnight session.
Globex operates virtually around the clock and is the hear of the CME Globex trading system. It was proposed in 1987 and introduced in 1992 as the first global electronic trading platform for futures contracts. This fully electronic trading system allows market participants to trade from booths at the CME exchange or from any remote location that can establish a connection. The one billionth (1,000,000,000) transaction was recorded on 19 October 2004.
When Globex was first launched, it used Reuters' technology and network. September 1998 saw the launch of the second generation of Globex using a modified version of the NSC trading system, developed by Paris Bourse for the MATIF (now Euronext).
To connect to Globex, traders connect via Market Data Protocol (MDP) and iLink 2.0 for order routing.
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