CME Launches Instant Messaging for Energy Traders
August 2, 2012
Looking to offer traders even more options for conducting their transactions, CME Group is launching a new instant messaging platform for traders in the energy markets, called CME Direct Messenger.
The platform will be powered by technology from Pivot, Inc. by instant messaging technology developed by software maker Pivot, Inc., which was recently acquired by CME Group.
The system is being integrated into the company’s CME Direct system, a new technology launched in late May that offers side-by-side trading of exchange listed and over-the-counter markets. CME Direct currently supports trading of CME Group’s benchmark energy futures markets and OTC energy swaps. These are part of the CME Group energy complex, which has average daily trading volumes of over 1.9 million contracts.
“The software is tailored to allow for the trading of financial and energy products via instant messages – making transactions of this kind easier, faster and more secure,” says Michel Everaert, Managing Director, OTC Solutions at CME Group.
For example, with the system, users will be able to conduct trades via message parsing, which involves drill downs of text in various message fields. For example, the system can pick up phrases for message fields such as “500 shares,” “IBM” and “Buy,” and then respond to such a request without the user having to retype these phrases.
It is one of CME’s ongoing strategies to continually offer new channels for traders to conduct their transactions: electronic trading, broker-trading, and now instant messaging.
Everaert says that instant messaging has become a critical part of the financial community’s price discovery and trading operations, and that by “integrating Pivot’s messaging solutions with CME Direct, we will offer our customers an industry-leading messaging software, alongside the first fully automated front-to-back-office platform for trading CME Group’s listed and OTC energy products.”
“This is an important addition to our electronic trading offering for energy markets, and it will create new efficiencies and trading opportunities for our clients,” he said.
According to CME, Pivot’s IM platform is widely adopted within the energy and equity markets. The platform’s tools are used to distribute and negotiate Request-for-Quotes, block orders, complex options and other order types within the energy and equity markets. CME Direct Messenger will integrate that technology into pre-trade, trade and post-trade workflows of traders and brokers.