A technical glitch temporarily shut down trading Monday on the CME Group’s Globex electronic market for crude oil futures and options contracts.
The error occurred shortly after 2 p.m. EST and the electronic platform reopened at 3:15 p.m. EST.
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“Due to technical issues, the CME Globex Crude Complex markets have been halted,” the CME said on its website moments after the shutdown. A short time later, the CME released a statement, saying, “Our IT teams are working to resolve the problem as soon as possible.”
The CME said all day orders for crude oil futures with Monday's trade date would be cancelled.
According to the statement: “All day and session orders, including GTDs (good til date) with today’s date will be cancelled. All GTCs (good til cancelled) that have been acknowledged will remain working.”
Phil Flynn, energy analyst at PFG Best, said the shutdown points to the continued need for floor traders in energy futures and options markets as an alternative to electronic platforms, where the vast majority of trading now occurs.
When trading on the electronic platform halted due to the technical glitch volume moved to open outcry markets both in New York and Chicago.
By 3:19 p.m. EST, crude for March delivery was up $2.02, or 2.05%, at $100.69 a barrel. The front-month contract earlier settled at $100.91, up $2.24, or 2.27%.
The CME had not issued an explanation for the halt by 3:45 p.m. EST.