CME glitch hits crude oil market

The crude oil futures market experienced a hiccup Monday, February 13, when activity on CME Group's Globex electronic trading platform was halted, according to Reuters.

Trading went down for a little more than one hour starting at 2:04 p.m., as the market was preparing to come to a close. The problem was caused by a glitch that led to a build up of trades in a backlog that were then released all at once, causing confusion as large disparities were seen between the crude oil price of the backlogged trades and current prices.

Eventually CME was forced to shut down the system before bringing it back online later in the afternoon, but in the meantime a great deal of activity moved to the trading floor and CME was forced to calculate closing prices from those deals.

Electronic trading accounts for 95 percent of all oil futures, with CME averaging 11.6 million trades per day in January, according to The Wall Street Journal. When CME shut down the market and cancelled outstanding orders, it caused problems for many traders.

"There's a little yelling and screaming in the crude ring right now," Jeffrey Grossman, president of BRG Brokerage, told the Journal.

Information on the crude oil market can be found at PennEnergy's Research area.

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