The Trading Pits Are Coming Back!!??!!

Discussion in 'Wall St. News' started by heisenbern, Aug 2, 2017.

  1. algofy

    algofy

    why?
     
  2. Baron

    Baron ET Founder

    Total nostalgia and nothing else.
     
    DeltaRisk, VPhantom and Overnight like this.
  3. ajacobson

    ajacobson

    It's slotted to be a surrogate for a COB. No actual screens, but that may have changed. Just a group of traders with laptops.
     
  4. Overnight

    Overnight

    lawrence-lugar likes this.
  5. JackRab

    JackRab

    stupid idea... fun for visitors, but that's about it...

    "Box has argued that open outcry trading is better for large transactions and that its new trading floor would encourage better participation in large trades."

    That's usually done over the phone anyway, off-screen... but I don't see how a bunch of guys in a pit would make a contribution to this..
     
  6. JSOP

    JSOP

    I agree. Also it didn't address many questions like HOW and in what way does an open-cry pit trading system handle large transactions better than electronic trading machine? How is the handling of large transactions by electronic trading algorithms inferior than human interaction? And define "Large Transactions". Over which threshold is a transaction considered "large transaction"? Is it over dollar amount being traded or volumes? And this "large transaction" over this threshold cannot be handled by the machine because the machine just crashes after a certain limit? Or are you concerned that the machines can be hacked so "large transactions" have to be handled by humans? And humans cannot be spies?

    Until they answer these questions it's really hard to convince anybody in this electronic age that financial transactions handle by humans would be superior than machines that work at 100X the speed and 1/100 of the cost.
     
  7. Sometimes machines make really dumb catastrophic mistakes...
     
  8. ajacobson

    ajacobson

    2nd floor of the CBOT BOX FLOOR.jpg
     
  9. JackRab

    JackRab

    Large trades are still done by human traders... but you don't need a trading pit for that...
     
    #10     Aug 6, 2017
    algofy likes this.