CME To Introduce New API By July 31

The Chicago Mercantile Exchange plans to introduce new Application Programming Interface (API) technology by July 31 to enable its clearing member firms and independent software vendors (ISVs) to connect to both its electronic and open outcry trading platforms. The technology paves the way for a variety of alternative "front ends" to the CME's GLOBEX®2 electronic trading system. In addition, the new API will provide firms with open outcry access not only to CME products but to those of all U.S. futures exchanges. The CME's FIX API is based on the popular Financial Information Exchange (FIX) standard used across the securities industry today for communications between securities firms. The Chicago Mercantile Exchange has pioneered the adaptation of that standard of technology to handle futures and futures options, said Merc Chairman Scott Gordon. Dozens of clearing firms and ISVs have expressed interest in using the new FIX API to connect order flow to the Merc's electronic and open outcry trading venues, Gordon said. The exchange has successfully completed quality assurance testing of the technology, and several firms have already begun their own quality assurance testing with the new system. The specifications for firms to write to the new API are available via the Merc's Web site, www.cme.com. The FIX API builds on the momentum of the Order Routing API introduced at the CME in January 1998. Nineteen of the exchange's member firms are connected to the CME's Order Routing API through an estimated 10,000 terminals. Gordon said the CME's FIX API represents the next generation of the exchange's open technology and will, over time, replace the Order Routing API. The introduction in July assures that those firms wishing to participate do not have to wait until next year because of the freeze many financial institutions are imposing on new technologies deployed because of Year 2000 concerns. The new technology supports the CME's side-by-side electronic and open outcry trading of Eurodollar futures contracts. Side-by-side trading is scheduled to begin on July 6.