Trade Data Supply Chain Demystified Part 3: Real-Time Trade Data from the CME

General Data Flow for Futures Exchanges Before we jump into the specifics around the CME, let’s remind ourselves of the general plumbing for exchange futures trading. Save the diagram below and share freely. It should help multi-disciplinary teams see how each of their respective pieces of the trade data supply chain are connected. The blue circles are technologies being used. The green circles are companies involved. Use the glossary below to clarify jargon and acronyms. If you have any questions, please reach out and , let us know. A trader uses software (an OMS) to send orders into the exchange to buy. The exchange has a matching engine that matches the buy order with another trader’s sell order, which results in a trade. Trade data is then sent from the exchange to the clearinghouse to run risk checks. This ensures that the companies involved in the trade can fulfill the obligations around that trade. After the risk check,  the trade is then  “cleared” by the clearinghouse. The trade then makes its way to the FCM for margin and fees collection at the end of the day, before being made  available to the trader’s firm via an API. The final leg… continue reading

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