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7 Jan 2017 (AFR) – Old-school trading (“open outcry”) might be in the pits, but volumes aren’t

[COMMENT: This is interesting, about the trading pits in some stock exchanges, and how they are all slowly moving to electronic trading. Interesting read.]

(7 January 2017, AFR, p20, The Economist)

‘As a new trading year began this week in the art-deco tower that houses the Chicago Board of Trade, big men were clustered around pits dealing in futures and options tied to various commodities.’

‘Their approach dates back to the building’s opening in 1930, and was once familiar in cities throughout America. But after decades of attrition, on December 30 the CME Group (named after the Chicago Mercantile Exchange) closed the “open outcry” trading pits that it operated in New York. In America, Chicago’s hue and cry has become unique.’

‘Even this exchange is a shadow of its former self. There are now nine pits, down from 32 in 2007. A once teeming trading floor was closed in 2015. Most activity in the contracts still traded in the pits is electronic. No one in the surviving CME pits in Chicago seems worried by the New York closures. But they have a symbolic impact. The markets have long been a colourful, fractious component of America’s financial architecture.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

Or read more at The Economist.

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Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

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