Core Insights - An outage at CME Group, the world's largest exchange operator, disrupted trading on its currency platform and affected futures across various sectors including foreign exchange, commodities, Treasuries, and stocks [1] Company Impact - The outage halted trading activities on CME Group's popular currency platform, indicating a significant operational disruption [1] - The incident highlights the vulnerability of trading platforms to technical failures, which can have widespread implications across multiple asset classes [1] Industry Implications - The disruption at CME Group raises concerns about the reliability of major trading platforms in the financial markets [1] - Such outages can lead to increased volatility and uncertainty in the markets, affecting investor confidence and trading strategies [1]

Core Insights - A data-center fault at the Chicago Mercantile Exchange (CME) led to a halt in trading of futures and options, causing significant disruption across various markets [1][2] - The malfunction was attributed to cooling system issues at a data center operated by CyrusOne, with no clear timeline for the resumption of normal operations provided [1][2] Market Impact - The outage has already exceeded a similar technical error from 2019, highlighting the extensive influence of CME Group Inc. and its Globex electronic trading platform [2] - The disruption has raised concerns among market participants about the potential loss of a trading session, affecting millions of contracts linked to major indices like the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 [2] Trading Challenges - The halt in trading particularly complicates the operations of equity-derivatives desks, as options on the S&P 500 with a notional value of approximately $600 billion were set to expire on the same day [6] - Traders are facing difficulties in rolling positions from one monthly contract to another, leading to frustration among those holding positions during the outage [4] Commodity Market Effects - Gold experienced erratic price movements, with bid-ask spreads significantly wider than usual, while US crude oil and palm oil markets were also impacted [5] - The timing of the disruption coincided with the expiry of gasoline and diesel futures, which could complicate settlement processes [5]

Core Insights - A significant technical outage has disrupted trading operations at CME Group, affecting various platforms including foreign exchange, commodities, Treasuries, and equity futures [1][2]. Group 1: Outage Details - The outage was caused by a critical cooling system failure at a third-party facility, specifically at CyrusOne data centers, which are essential for CME's infrastructure [2][3]. - CME confirmed the cooling issue and stated that technical support teams are working to resolve the situation promptly [3]. Group 2: Impact on Trading - The halt in trading began just before 0300 GMT and affects all futures and options contracts on the Globex platform, leading to a cessation of price updates for major global benchmarks [4]. - The EBS foreign exchange platform, crucial for trading major currency pairs, is also offline, although traders have managed to execute trades on alternative venues [4]. Group 3: Market Context - The outage occurred on a truncated trading day following the Thanksgiving holiday, which was expected to have thin liquidity, complicating the situation for traders managing positions [5]. - Despite the outage, pre-market trading showed positive movement, with SPDR S&P 500 ETF Trust (SPY) up 0.29% at $681.66 and Invesco QQQ Trust ETF (QQQ) up 0.33% to $616.31 [5].

The Chicago Mercantile Exchange has blamed a problem with one of its data centres as the reason for the shutdown - Christopher Dilts/Bloomberg The world’s largest financial exchange has been forced to halt trading after a fault at one of its data centres, leaving investors “flying blind” and threatening wild price swings when trading resumes. The Chicago Mercantile Exchange (CME) confirmed trading had been suspended at 2.44am on Friday morning, blaming a problem with one of its data centres. “Due to a c ...

Core Insights - The CME reported a cooling issue at its data center, leading to a halt in US futures trading, which may affect various asset classes [1][2][10] - The outage raises concerns about the reliability of data centers, particularly regarding their cooling needs and the implications for the AI ecosystem [3][6][10] Data Center Operations - The CME is working to resolve the cooling issue and will provide updates to clients [2] - There are concerns about the adequacy of water and energy resources for cooling data centers, especially as reliance on these facilities increases [4][8] - Companies like CyrusOne, which provide technology for data centers, are under scrutiny for their energy and water usage practices [6][7] Market Impact - Treasury yields have increased by two to three basis points, but trading is characterized by wide bid-ask spreads, indicating patchy market activity [3] - The current situation is contributing to thin liquidity across various asset classes, exacerbated by the Thanksgiving holiday [11] - The volatility observed in November is expected to continue, with potential for choppy trading conditions [5][11]

Core Insights - Trading was interrupted due to an outage on the Chicago Mercantile Exchange, impacting various asset classes including Treasuries, equities futures, and commodities [1] Group 1 - The outage affected trading activities across multiple asset classes, indicating potential disruptions in market operations [1] - The incident highlights the reliance of financial markets on electronic trading platforms and the implications of technical failures [1]

CME Group has halted trading across its Globex platform, affecting a wide range of contracts tied to stocks and crypto. The temporary suspension is due to “a cooling issue at CyrusOne data centres,” a statement on its website read. “Support is working to resolve the issue in the near term and will advise clients of Pre-Open details as soon as they are available,” the CME team wrote. CyrusOne operates over 55 data centres across the US, Europe and Japan, Reuters noted. The outage has impacted all futures ...

CME Group Inc. (CME) is a major force in global finance, a Chicago-based titan that has grown into the world’s preeminent arena for derivatives trading. What began as separate, historic exchanges has evolved into a unified powerhouse, bringing together the Chicago Mercantile Exchange, Chicago Board of Trade, NYMEX, and COMEX under one formidable umbrella. From interest rates and equities to currencies, energy, agriculture, and precious metals, CME Group serves as the silent engine behind markets that neve ...

CONCLUDED Stocks End in Green to Close an Ugly November Last Updated: 9 hours ago CME Outage Causes Thin Liquidity in Forex, Bonds. Trade Could Be Choppy. On currency markets, analysts also reported that forex trading on the EBS platform—a wholesale electronic trading platform for foreign exchange that is part of CME Group—was affected by the outage. Topics Memberships Subscribe to Barron's Tools Customer Service Customer Center By Jessica Fleetham, Dow Jones Newswires Currencies and bonds are trading but l ...

Core Points - Trading in U.S. index futures and other contracts was halted due to technical issues at CME Group, impacting investor sentiment ahead of the market's reopening after Thanksgiving [1][2][3] Group 1 - CME Group experienced disruptions in trading due to a cooling issue at CyrusOne data centers, which affected futures tracking major indexes like the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 [2][3] - The halt in trading occurred on Black Friday, a significant day for market activity, as investors were looking to gauge sentiment [1][2] - CME Group stated that support teams are working to resolve the issue and will provide updates to clients regarding pre-open details [3]