The End of Open Outcry
Kayvon Pirestani
Issue date: 5/27/04 Section: Perspectives
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To be fair, though, open outcry does have its merits. Sentimental value is surely one of them, especially here in Chicago, where the Board of Trade pioneered open outcry over 150 years ago. The raucous shouts and inventive hand signals of the trading pit are certainly more fun to watch than the clinical efficiency of a computer screen. And visitors to the trading pits in Chicago and New York certainly contribute to tourism revenue. Some also argue that certain types of spread trades can be more efficiently executed in a trading pit - though this is unlikely to persist as trading system technology improves. In any case, these advantages pale in comparison to the huge cost and efficiency savings of electronic trading.
In the 19th-century, English handicraftsmen better known as Luddites rioted for the destruction of the textile machinery that was displacing them. Today, the locals are fighting a losing battle against electronic trading. The era of open outcry is over. The heaving trading floors of the Merc and the Board of Trade will before long be turned into museums. Go visit while you can.
In the 19th-century, English handicraftsmen better known as Luddites rioted for the destruction of the textile machinery that was displacing them. Today, the locals are fighting a losing battle against electronic trading. The era of open outcry is over. The heaving trading floors of the Merc and the Board of Trade will before long be turned into museums. Go visit while you can.