CME Outage: Traders Accuse "Manipulation" After Extended Trading Halt

The Chicago Mercantile Exchange (CME) recently experienced a significant trading disruption due to a cooling system failure at a key data center in Illinois. This malfunction halted trading for approximately 10 hours, leading to frozen markets across various regions and prompting claims of manipulation from traders.

Key Takeaways

Extended Trading Halt: The CME faced a 10-hour trading suspension due to a cooling system malfunction.
Accusations of Manipulation: Traders accused CME of manipulation, highlighting issues with centralized infrastructure.
Market Impact: The outage affected multiple asset classes, including equities, currencies, and cryptocurrencies like Bitcoin and Ethereum.
Demand for 24/7 Trading: CME is planning to transition to a 24/7 trading cycle for cryptocurrency futures by 2026.

CME Outage: Traders Accuse "Manipulation" After Extended Trading Halt

CME confirmed that the trading suspension was caused by an issue at the CyrusOne-operated facility in Aurora, which has been vital for CME’s Globex electronic markets for nearly two decades.

Although the exchange returned to full functionality at 1:30 p.m. UTC on Friday, the impact was already felt in Asia and Europe, particularly as participants navigated low liquidity levels after Thanksgiving.

Traders Frustrated by Outage Amid Low Liquidity

During the breakdown, traders from various asset classes—including equities, currencies, commodities, energy, and cryptocurrency—reported being unable to close or adjust their positions. For many, this situation felt like a “nightmare.”

Timothy Bozman, a stock trader, publicly criticized CME for allowing a “simple issue” to destabilize the entire futures market, questioning the vulnerability created by a single point of failure.

Some traders suggested the timing of the issue was “too convenient,” occurring during a low-volume trading session in Asia on Thanksgiving, when quick price changes can happen with minimal resistance. Additionally, just moments before the halt, silver futures were nearing a record high of $54, further fueling speculation and frustration.

The disruption was particularly impactful because the Globex platform processes the majority of CME's trading volume. Reports indicated that both crude oil and palm oil markets froze during the outage, while crypto traders lost access to Bitcoin and Ethereum futures entirely.

For firms preparing for month-end rolls, particularly those needing to adjust Treasury futures or SOFR-linked positions, the timing added an increased layer of complexity. Traders noted that even after markets reopened, there were persistent delays in Treasury futures and certain interest rate products.

Trading activity had already been low due to the U.S. Thanksgiving holiday, and the outage further hindered an already quiet market environment. One frustrated user on social media called for CME to cancel losses for trades affected by the freeze, encapsulating the general anxiety among traders unable to act in a volatile market.

CME Outage Highlights Systemic Risks

CyrusOne, which operates a network of over 55 data centers globally and is supported by KKR and BlackRock’s Global Infrastructure Partners, confirmed the cooling failure.

The Aurora facility is known among high-frequency trading firms that place servers nearby to minimize latency when accessing CME’s matching engines. Notably, the CME acknowledged that CME Direct, a platform used for some markets, remained down even after Globex resumed operations, showcasing the disruption's intensity.

This incident lasted significantly longer than a similar outage in 2019 and served as a reminder of how centralized infrastructures can create systemic risks within electronic markets. CME has faced technical difficulties before, including a 2014 outage caused by a software issue impacting agricultural contracts.

Despite these challenges, markets began to recover and adjust to broader price movements. On the Friday following the halt, Bitcoin futures reopened at $90,940—up from a close of $90,355 before the holiday—and even surpassed $93,000 as Bitcoin bounced back from a recent low near $80,522.

Analysts observe that Bitcoin faces resistance around $95,000, but overcoming this hurdle could pave the way for it to reach six-figure milestones.

This blackout occurs just as CME is expanding its role in the digital asset space. In October, the exchange announced plans to transition its cryptocurrency futures and options to a continuous 24/7 trading format by early 2026, pending regulatory approval. This move is in response to the increasing demand for continuous risk management in always-on crypto markets.

CME indicated that trading on the Globex platform would continue without interruption, aside from brief weekly maintenance, with weekend trades posted for clearance and settlement on the next business day.