CME Group to Close Many of Its Trading Pits in Chicago
< img src=" https://images.wsj.net/im-334183/social "class=" ff-og-image-inserted "/ > The exchange operator CME Group Inc. CME 0.32% said it would completely close many of its open-outcry trading pits in Chicago, ending among the world’s last vestiges of old-fashioned floor trading. In a statement Tuesday, CME said a number of trading pits that it closed temporarily in March 2020 to prevent the spread of Covid-19 would not be reopened. Many U.S. work environments are coming back to life as the pandemic eases. Some of the CME pits being closed down consist of pits for trading farming products, where traders bargain over options on soybeans, wheat, livestock and hogs. Floor trading for agricultural products has actually existed in Chicago considering that the mid-19th century and has long been part of the heritage of CME Group, which took its name from the Chicago Mercantile Exchange, now one of the business’s subsidiaries. However the increase of electronic trading has made floor traders almost irrelevant in most monetary markets, and exchanges have actually been shutting down trading pits in Chicago and elsewhere throughout the past twenty years. The only part of CME’s trading floor that will stay open is the Eurodollar choices pit, which the exchange operator reopened in August with social-distancing requirements and other steps to safeguard
traders from the coronavirus. Eurodollars are a type of interest-rate contract and represent among CME’s greatest marketplaces. CME is likewise permanently closing its pit for the trading of futures and choices on the S&P 500, the exchange operator stated Tuesday. Following CME’s relocation, just a couple of stations of flooring trading stay in the U.S. Those consist of the New York
Stock market’s trading floor in Manhattan and several options trading floorings, including one at CME’s crosstown competitor in Chicago, Cboe Global Markets Inc.
. Overseas, the London Metal Exchange is thinking about completely closing its open-outcry ring, where traders swap metals such as copper and lead while resting on a round red couch. Like CME, the LME briefly closed the ring in March 2020 as a coronavirus safety measure, however the closure sparked longstanding discussions over whether open-outcry trading was still needed. In 2016, CME shut down the Manhattan energy trading floor of the New York Mercantile Exchange, one of its subsidiaries. The next year, CME ended an everyday auction on its Chicago trading floor that had actually assisted set the national rate of cheese, replacing it with an electronic process. Compose to Alexander Osipovich at [email protected]!.?.! Copyright © 2020 Dow Jones & Company, Inc. All Rights Booked. 87990cbe856818d5eddac44c7b1cdeb8 Published at Wed, 05 May 2021 00:42:00 +0000 Attribution -To Learn More here is the Post Source: https://www.wsj.com/articles/cme-group-to-close-most-of-its-trading-pits-in-chicago-permanently-11620175341