* Trading opened at 0200 GMT on Mon, 4 hrs later than
* Traders say delay had limited impact
* Outage follows glitch in April
(Updates with CME statement, adds CFTC, analyst and trader
comments, stock price, CHICAGO dateline)
By Tom Polansek
CHICAGO, Aug 25 CME Group Inc, the
world's largest futures exchange operator, said it halted
trading on its electronic platform for four hours on Monday
because of a technical issue resulting from planned software
CME, which owns the Chicago Board of Trade, New York
Mercantile Exchange and other markets, made the reconfigurations
over the weekend as part of ongoing upgrades to technology, a
spokeswoman said in a statement.
The outage was the latest glitch to hit Chicago-based CME
following the worst-ever electronic trading outage in its
agricultural markets in April.
Yet, traders said the latest delay had a limited impact
because volumes were mostly thin in the absence of major
market-moving news over the weekend.
CME shares were up 1.2 percent at $75.76 in afternoon
"If there was a night for it to be dead, that would have
been the night," said P.J. Quaid, a corn options trader in
The outage, which occurred during Asian trading hours, came
as CME is planning to launch a London-based cocoa contract in
the coming months in a direct challenge to rival
Intercontinental Exchange Inc and is looking at entering
the European wheat market.
The halt should not hurt the company's reputation because
glitches are "part of the complexity of this business," said
Diego Perfumo, an analyst at Equity Research Desk.
"If it's consistently happening, it becomes an issue," he
Last year, other exchange operators, including CBOE Holdings
Inc and Nasdaq OMX Group Inc, suffered major
The start of trading in all contracts on CME's electronic
Globex platform, apart from Bursa Malaysia derivatives, was
delayed because of the technical problem. Markets instead opened
fours hours later at 9 p.m. CDT (0200 GMT).
CME "communicated with our customers and regulators as we
worked toward a resolution of the issue and the reopening of the
markets," company spokeswoman Laurie Bischel said in an email.
The U.S. Commodity Futures Trading Commission said it was in
communication with CME personnel about the outage and declined
Among contracts traded on CME include the benchmarks for
U.S. crude and agricultural markets such as wheat,
corn and soybeans. Standard & Poor's 500 Index
futures, treasuries, U.S. gold and silver futures
are also traded on the system.
As a result of the latest trading halt, all day and session
orders, including so-called good-through-date orders with an
Aug. 24 trade date were cancelled. All open orders that have
been acknowledged remained working, CME said.
(Additional reporting by Colin Packham in SYDNEY, Manolo
Serapio Jr. and Florence Tan in SINGAPORE and Douwe Miedema in
WASHINGTON; Editing by Michael Perry, Joseph Radford and