The new order limit size will apply to all equity index products traded on CME's GLOBEX® electronic trading platform, including all full-size equity index contracts and E-miniTM products. The order size increase does not apply to CME's non-traditional TRAKRSSM futures products.
CME previously increased the size of its order limits in May 2001. Since then volume in CME's equity index products has increased 138 percent, totaling over 19.2 million contracts in November.
While there are no limits on overall order size in equity index futures, orders greater than 400 contracts must be entered as multiple entries of 400 contracts or less. Order limits were established to help prevent erroneous orders from being entered into the GLOBEX system and to protect customers from keyboard errors. Since order limits were last increased, CME has made additional enhancements to its GLOBEX system to prevent or minimize the impact of erroneously entered orders, including new stop logic functionality implemented earlier this year.
"This change was made in response to numerous requests from our customers and should enhance their order entry efficiency on CME's GLOBEX platform," said Rick Redding, CME managing director for equities.
CME maintains an error trade policy for electronically traded products which allows the exchange to cancel, or "bust" erroneous or disputed trades under specified circumstances. Additionally, CME's equity index products have set price limits, adjusted quarterly and coordinated with limits in cash equity markets, to prevent trades below specified prices.
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 its trading floors and GLOBEX® electronic trading platform. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.4 billion per day in settlement payments in the first 11 months of 2003 and managed $34.1 billion in collateral deposits at Nov. 30, 2003. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE: CME), which is part of the Russell 1000® Index.
Chicago Mercantile Exchange, CME and GLOBEX are registered trademarks of Chicago Mercantile Exchange Inc. E-mini is a trademark of CME. TRAKRS and other trade names, service marks, trademarks and registered trademarks that are not proprietary to Chicago Mercantile Exchange Inc. are the property of their respective owners, and are used herein under license. Further information about CME and its products is available on the CME Web site at www.cme.com.
