During the pre-opening state on CME Globex (“Globex”), an Indicative Opening Price (“IOP”) is calculated. As described in Rule 573 (“Globex Opening”), the IOP reflects the price between the buying and selling pressure at which the largest volume of trading can occur and is based on the Globex equilibrium price algorithm and all pending orders that may be executed on the Globex opening. The IOP is broadcast to all Globex users and to the CME Group market data/ticker feed.
Market participants are reminded that all orders entered on Globex during the pre-opening are expected to be entered in good faith for the purpose of executing bona fide transactions.
For example, the entry and cancellation of orders during the pre-opening for the purpose of either manipulating the indicative opening price or attempting to identify the depth of the order book at different price levels is considered uncommercial conduct detrimental to the welfare of the exchange and will result in disciplinary action for violation of Rule 432 (“General Offenses”).
Questions regarding this advisory may be directed to the following individuals in Market Regulation:
Richard Schell, Associate Director, 312.341.3124
Robert Sniegowski, Associate Director, 312.341.5991
For media inquiries concerning this Advisory Notice, please contact CME Group Corporate Communications at 312.930.3434 or firstname.lastname@example.org.