Futures Exchange Reins In Runaway Trading Algorithms

CME takes emergency measures to combat surging data volumes in Eurodollar futures

Most eurodollar-futures trading is now electronic. In 2003, clerks signaled prices in CME’s Eurodollar futures pit.

Photo: Scott Olson/Getty Images
By
Alexander Osipovich
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The Chicago Mercantile Exchange is cracking down on runaway algorithms in one of the world’s biggest futures markets.

Over the past two months, the volume of data generated by activity in CME’s Eurodollar futures soared 10-fold, according to exchange statistics. The torrent of data strained trading systems and prompted complaints to the exchange, traders said. It subsided Monday after CME took emergency measures to halt it.

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