I think the subject of S&P500 futures price discovery deserves its own thread. Below is a quote from another thread from jaming5002, an S&P clerk who is going to make the move to S&P pit trader. In his comment he believes the S&P pit still acts as the center for S&P price discovery. I will disagree. I respectfully disagree with your comment on price discovery. IMHO the role of price discovery has mostly shifted to the Emini from the SP. Pit traders stand and watch the ES for price direction. The reason for this is that the faster technology of the Emini allows all traders to instantaneously affect price with their orders. This means that traders from all over the world armed with the latest information, news etc. have split second influence on what the current price should be. In contrast, the S&P pit, with its built in time lag, only really reflects the split second price opinion of a couple of hundred Chicago based traders, who drink in the same bars, live in the same area, generally think alike. I.e. âwhoâs gonna win the playoffs â Da Bulls! Whoâs gonna win the Superbowl â Da Bears!â Because they are all packed together in a pit screaming â they donât have as easy access to all the information, news etc. that e-traders do. The net result is that the Emini has taken over the role of price discovery for the S&P 500 market. The only caveat is that because the CME has deliberately made the Emini less attractive for large institutional traders with five times the exchange fees and a tick size 2 Â½ times bigger â for large orders, the pit remains the place for price discovery.