Following a merger with the Chicago Board of Trade (CBOT) in 2007, CME grew to become the CME Group. The combined entity provides access to all major asset classes by offering futures and options based on interest rates, equity indices, foreign exchange, commodities, energies and alternative investment products such as weather and real estate. As part of the exchange’s further growth, CME began listing NYMEX and COMEX contracts on their Globex platform. In March 2008, CME Group announced that they are expanding this relationship with a definitive agreement for the acquisition of NYMEX.
As new technologies emerged, CME introduced their Globex® platform to facilitate electronic trading.
CME Group (based in Chicago, Illinois) provides matching via the CME Globex® electronic matching engine.
CME Globex supports the following matching algorithms:
The TT® platform supports connectivity to the exchange, so you do not have to contact the exchange regarding connectivity options.
TT supports the CME Globex Self Match Prevention (SMP) functionality.
SMP is optional and allows an executing firm to prevent the matching of orders with common ownership if both the buy and sell orders contain a Self Match Prevention Identifier (SMP ID) and Executing Firm ID. The SMP IDs are user-defined and need to be registered at the exchange and configured for each selected user on a per firm basis using the Setup application.
Each product definition downloaded from the exchange by TT contains a market segment ID. When an order action is submitted for a product, TT routes the order to a Market Segment Gateway (MSGW) based on the market segment ID for that product.
For example, TT routes an order to CME for an ES contract as follows:
TT® supports CME ClearPort, which provides a means for OTC (over-the-counter) market participants to submit off-exchange transactions electronically to the exchange. Using the Setup application, you can set up a connection to the CME ClearPort interface, and assign and manage broker users and counterparties who are registered with CME ClearPort to submit OTC transactions to the exchange.
As a company administrator, you can do the following in Setup to support CME ClearPort functionality for your company:
The Setup application automatically downloads the list of counterparties associated with a broker user ID registered at CME. When an account is assigned to an enabled (active) ClearPort connection with a valid broker user ID, the counterparties associated with the ID are automatically assigned to the account. The counterparties are displayed in the Accounts | Exchanges | CME tab for the selected account in Setup.
When assigning an account to a CME ClearPort connection, consider the following: