https://www.smartbrief.com/branded/...zHFlhglg8u8HPHLz9WrnZkROg2XTUMjJy88Ndm2Plr0CU It is behind a paywall.
That could really effect liquidity in the S&P pit. A lot of volume is pit traded. And maybe they decide a pit is no longer needed if it stays closed for a while.
Real institutional traders who actually take delivery still use the pits to trade. unlike the speculators who don't deliver the contracts or speculators who are long and won't take delivery. they only buy from real sellers of the contracts that will deliver.
Pits are not what they were used to be. But, floor trades do exist, and CBOE is still a big player in that field.
The SPX pit at the CBOE is still very active. A lot of volume goes through here. If you watch time and sales, floor trades are now marked as such and you can see the volume.
You do what's called an EFP - exchange for physical and if you do that a great deal(pensions that are indexed) you tend not to use the pit, but rather trade the SPX upstairs. Most institutional desks have an SPX license and you can trade size with them and their credit - C2 is still available as well.