Globex: What It Is, How It Works, and Its History

Globex (officially CME Globex) is a continuously operating electronic trading platform for derivatives—futures, options, and commodity contracts—developed for the Chicago Mercantile Exchange (CME). Launched in 1992, it provides near‑24/7 global market access, supports a wide range of asset classes, and now accounts for the vast majority of CME Group trading volume.

Key takeaways

• Launched in 1992, CME Globex was one of the first large-scale electronic trading systems for derivatives.
• It operates nearly around the clock (Sunday evening through Friday afternoon), enabling real-time order entry and market data access.
• Globex supports many contracts that are traded only electronically, as well as contracts that remain available via traditional open‑outcry pits.
• The platform dramatically expanded liquidity, product innovation (e.g., E‑mini contracts), and global participation.

How Globex works

• Market access: Participants trade directly on Globex using a CME Group‑certified trading application and through a CME Group clearing firm.
• Trading hours: Sessions typically begin in the afternoon or evening and run through the next business day, with short breaks (about 30–60 minutes) between daily sessions depending on the asset. Orders entered in an evening session are generally dated and cleared for the following trading day.
• Market structure: Globex displays orders, prices, and trade data in real time, enabling price discovery and electronic matching across time zones.
• Scale: The platform handles millions of contracts daily and supports users in more than 150 countries.

Products traded

Globex covers a broad set of markets, including:
* Agricultural futures
Energy (crude oil, natural gas)
Stock index futures (including E‑mini contracts)
Foreign exchange (FX) futures
Interest rate futures
Metals
Real estate and weather‑related contracts

Some contracts are offered exclusively on Globex, while others are available both electronically and via traditional open‑outcry trading floors.

History and development

• Origins: Conceptualized in the late 1980s to provide after‑hours electronic coverage for futures and options.
• Launch: Went live on June 25, 1992, using technology and network infrastructure from Reuters. Initial offerings included a few currency products and a Treasury note contract.
• Product innovation: In 1997 the E‑mini S&P 500 futures contract debuted as a Globex‑focused product; additional E‑mini variants followed.
• Open access: In 2000 CME instituted an open access policy allowing customers to trade directly on Globex without brokers, which accelerated adoption.
• Growth milestones: Average daily volumes exceeded 1 million contracts in 2002; electronic volume surpassed pit volume in 2004; system volume exceeded 1 billion contracts in 2007. By the platform’s 20th anniversary, electronic trading represented a dominant share of CME Group activity.
• Expansion: Over time, products from exchanges such as the Kansas City Board of Trade and Minneapolis Grain Exchange migrated to Globex; the platform also formed partnerships with international exchanges.

Impact and considerations

Advantages:
* Extended trading hours and global access increase liquidity and allow for faster price discovery.
Electronic execution reduces some transaction costs and enables programmatic trading strategies.
Product innovation (e.g., E‑mini contracts) broadened participation among smaller traders.

Considerations:
* Access requires a clearing relationship and certified software.
Some contracts remain subject to open‑outcry trading or hybrid models.
Electronic markets introduce technological and operational risks (latency, outages) that participants must manage.

Conclusion

CME Globex transformed derivatives trading by bringing continuous, electronic market access to a wide set of asset classes. Its combination of global reach, product innovation, and high volumes has reshaped how futures and options are traded and cleared, making electronic trading the primary venue for many markets.