|Chicago Mercantile Exchange (CME) group's Chairman Emeritus Leo Melamed speaks during an interview with Reuters in Tokyo in this June 30, 2014 file photo.|
Business News | Wed Feb 4, 2015 10:46pm EST
Ending an era, CME Group to shutter most futures pits
By Tom Polansek
The world's largest futures market operator will shutter almost all of its open-outcry futures pits by July 2, ringing the closing bell on a once-raucous tradition that has been in decline since the rise of computerized trading.
The decision by CME Group Inc (CME.O), announced on Wednesday, ousts traders of products ranging from grain and livestock in Chicago to gold and oil in New York. Once the only way to buy or sell a futures contract to hedge against price moves, open-outcry trading is now only 1 percent of total futures trading volume, according to the exchange operator.
Options pits, which have stayed active in the face of electronic trading, will mostly remain open in both cities.
CME is expected to provide more details on its decisions when it reports quarterly earnings on Thursday.