Some Thoughts After a Recent Visit to the CME Trading Floor

I had a chance to visit the trading floor the Chicago Mercantile Exchange this week.




This picture was taken during trading hours. Yet, notice how empty it is behind me.  Directly behind me is the S&P 500 trading pit.  Further back to the right is the Eurodollar pit.

On one hand, it is sad to think how little trading is actually done in the Pits these days. On the other hand, the Exchange is thriving, and trading volume is dramatically higher than ever.

Progress takes many forms. The trading pits were designed to create an open outcry, arms length transaction platform for fair price discovery.  That is still true today … just in a different form.

The process of trading and clearing is moving beyond human capabilities.  As the old duties of the Exchange fade away, the focus must be on the dangers, opportunities, and strengths of a bigger future.  That means new games to play, new risks to navigate, and a new set of rewards to capture.

The impossible becomes possible, when the invisible becomes visible.


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