It has been, since the first futures contract was traded in the first futures pit, an icon of a free and capitalistic market. In what appeared to be chaos, an orderly market was discovered as futures contracts were bought and sold in the cacophony of open outcry.
However, open outcry is now a relic of the past; death by a zillion computers.
The CME Group has announced that it will close most of its futures trading pits in Chicago and New York by July 2, due to the fact that open outcry futures trading has fallen to just 1% of the company's total futures volume, according to National Hog Farmer.
The floor-based S&P 500 futures market, which continues to provide an important venue for trading the underlying futures contract for the open outcry S&P 500 options on futures contract, will remain open on CME Group’s Chicago trading floor.
Options on futures contracts, which continue to trade actively on both the floor and the screen, will remain open on both trading floors except for the DJIA ($10) and NASDAQ-100 open outcry equity index options markets, which are designed to deliver into floor-based futures contracts.
Click here for more information from the CME.
Click here to read the story in National Hog Farmer.
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