The Chicago Mercantile Exchange (CME) was first opened in 1898 as the Chicago Butter and Egg Board and adopted its current name in 1919. The exchange became public in 2002 and since its inception, it has been a leading center for risk management products, such as options, futures, and other derivatives. The CME uses two systems of trading. The first system is the original mode of trading, called the “open outcry” system. In this type of arrangement, traders meet face-to-face on the trading floor where they use hand signals to buy and sell their derivatives. This method ensures that selling and buying prices are closer to their real values. The second system is called GLOBEX, which is the most recent system for trading and it has had a huge impact on globalizing the CME.         GLOBEX was the first electronic trading system ever to be introduced on a global stage, and was first implemented in 1992. It allows traders around the globe, no matter whether at home or at work, to access the Chicago Mercantile Exchange. To demonstrate how important this meant on a global scale, the one billionth trade was conducted in 1994, just two years after first being implemented. Soon, the GLOBEX-2 will replace GLOBEX, and will be launched in September 2009. According to CME, GLOBEX-2 will allow traders to access the CME in a Windows-compatible environment and allow them to customize their system; all while providing the same services that the original system offered, such as supplying access to the wide range of risk management products. The implications this has for a world that is becoming increasingly global are huge, because not only does it allow traders to access the CME without physical presence, but it also operates around the clock, opening the door for a huge market in these derivatives.                                 References  Chicago Mercantile Exchange. Distributed by PR Newswire on behalf of Chicago Mercantile Exchange. (2009) Globex2 set for start-up Sunday, Sept. 20. Retrieved from: http://www.prnewswire.co.uk/cgi/news/release?id=58216 Chicago Mercantile Exchange. CME Globex Newsletter. (2009) Retrieved from: http://www.cmegroup.com/globex/resources/glxnews.html