It is the end of an era of commodity trading by mouth, made famous by the movie “Trading Places” with Eddie Murphy and Dan Aykroyd.
O CME Group Inc. said third that his last remaining wells in Chicago, where agricultural commodity traders were still shouting their bids, will be closed permanently. Futures transactions had already been completely replaced by electronic trades, while option pits were active until March 2020, when Covid-19’s measures forced it to close.
“I don’t think I’m surprised,” said Dan Huber, an independent broker who spent 31 years on the floor. “It is sad to see it end like this, but we are all going to turn the page and move on. It was a good race. “
CME, one of the largest derivatives exchanges in the world, had already closed the floor for most future contracts in Chicago and New York in 2015, as the open floor fell to just 1% of the total volume. Option wells in Chicago, with a history dating back to 173 years, were the last bastion of the exchange for old-school commodity traders.
The Eurodollar options well will be the only one to continue operating. CME also said it plans to withdraw its life-size S&P 500 futures and options contracts, based on the floor, after the September 2021 contracts expired on September 17.
The 2009 documentary “Floor”It captured the fading arrogance of that world, where traders in colorful jackets shouting buy and sell orders could win or lose millions of dollars in a single day betting on everything from corn to pork belly.
The wells’ stories are legendary, with tales of hiring 6-foot and 6-inch traders to give them a physical advantage. Some people put elevators on their shoes.
The news of the permanent strike came the same day that Chicago announced that it plans to reopen fully on July 4.
“Nice slap in the face for all of us, who hope to get back on the ground to bring our business and our customer base together,” said Huber. “I will probably be involved in the business on the side of the screen, but that will never replace days on the floor.”