CME Chairman Terry Duffy said, “Our ability to introduce this upgraded options trading functionality to our handhelds is an important step to increasing the electronic liquidity of options trading at CME. The handhelds have served as an important tool in merging the liquidity of electronic and open outcry markets, and have helped CME’s floor traders better understand and leverage opportunities in the electronic marketplace.”
“We are focused on growing our electronic options markets,” said Craig Donohue, CME Chief Executive Officer. “During the past few months, we have introduced new market maker programs and announced a number of new options contracts, including equity options on CME E-Mini™ Russell 2000® futures contracts and the launch of new CME Euro FX and Japanese yen options contracts that will enhance the liquidity of our electronic options markets and provide new options trading opportunities for CME customers.”
Launched in 1999, CME Galax-C handheld devices currently are used in all four product areas at CME. Today, there are approximately 400 traders using the CME Galax-C devices on the trading floor averaging 120,000 contracts per day in February 2005, an increase from 31,000 per day in January 2004. In the CME Eurodollar futures market there are more than 200 handhelds in use, helping to grow electronic trading volume in CME Eurodollar futures from 300,000 in January 2004 to more than 1.8 million in February 2005.
Current futures traders will not be required to change the way they trade using the devices, but will have the option to utilize some of the new functionality if desired. Some of the key changes with the new software include the following:
- Ability to trade Options contracts. All options available on CME Globex will be available for trading. Users will have two order entry fields available for use at all times.
- Ability to have two different views of the options contracts. Users can opt to view the strike price ranges in two separate columns; one for calls on the left and one for puts on the right. The user can scroll separately between the call and put strike prices. Users can opt to view one strike price field in the center with the calls on the left and the puts on the right of the strike price. In this view the scroll bar will move the strike price for the puts and calls simultaneously.
- Ability to view and trade more than the current limit of 30 contracts. Users may request up to 1,000 futures contracts if desired.
- Ability to toggle between futures and options trading screens. With just a couple of taps, users may view either the futures or options trading screen.
Chicago Mercantile Exchange Inc. (www.cme.com) is the largest futures exchange in the United States. As an international marketplace, CME brings together buyers and sellers on CME Globex® electronic trading platform and on its trading floor. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.5 billion per day in settlement payments in 2004 and managed $44.1 billion in collateral deposits as of Dec. 31, 2004, including $3.1 billion in deposits for non-CME products. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE: CME), which is part of the Russell 1000® Index.
