Posted March 02, 2015 Adam Broadbent
CME Group in early February announced the closure of its open outcry futures trading in Chicago and New York. Since the London Stock Exchange moved to electronic trading in 1986, futures trading has seen a massive transition from pit to screen. In light of this recent news, we asked Steve Gordon, Director at Met Traders, his thoughts.
Hi Steve, so just quickly – can you give us a bit of background to Met Traders?
Well, we have been trading for the last 13 years and currently have about 50 traders. We have built a unique trading platform from the ground up and are now recognised as a leading financial futures house across the world’s top derivative exchange.
What are your thoughts on the open outcry floor’s closing?
It isn’t much of a surprise to be fair. The benefits of automation have been enormous; speed, efficiency and ease of access. It has always been inevitable that this transition from pit to screen would occur.
How has this affected Met Traders?
The transition has only been a positive for us. As the open outcry floors have closed electronic markets have opened up. This has allowed us to widen the range of products that we make available for our traders to access. With greater access comes greater opportunity and with greater opportunity comes greater rewards.
As I mentioned, we have now built a unique trading platform with access to a fantastic suite of products. This is being leveraged by our graduate traders and is available for any independent traders looking for a home.
What do you think the effects will be looking toward the future both for the industry and Met Traders specifically?
I don’t think there will be much further change looking toward the future. As CME said in their recent press release, their open outcry futures trading had fallen to just one percent of the company’s total futures volume. The transition has essentially already happened.