CME takes aggressive measures to promote electronic trading

The Chicago Mercantile Exchange (CME) has announced a number of initiatives designed to facilitate a shift of trading of its Eurodollar futures contracts away from traditional open outcry to electronic trading on its Globex platform.

The CME said it will propose a scheme for class B shareholders to give the board authority to transition the front two Eurodollar futures contract months onto CME’s Globex platform. The plan would allow the board to move trading onto the Globex platform automatically if electronic trading does not account for 25% of total Eurodollar trading by March 12. In addition, if the proportion of these contracts traded electronically falls below 25% for two consecutive months, trades will again be migrated automatically.

A shareholder meeting has been scheduled for March 16, when a vote on the matter will be taken.

The CME will also expand its market-maker program, it said, increasing the number of market makers allowed to operate in the program to 15 from six. This will also include regular trading hours of 7.20am to 2.00pm.

Members whose trading activity accounts for 3% of regular trading hour volume will have all Globex fees waived.