From NYT:
Most of the futures pits inside the Chicago Board of Trade building, an Art Deco tower that looms over downtown’s LaSalle Street, are scheduled to close by July after being choked by a decade of technological advancement that has made face-to-face trading largely obsolete.
It is often debated on this board whether the advancement of electronic trading will cripple the trading industry or make it better. Electronic trading makes trading complex products a lot easier, but also reduces the amount of traders needed. With a computer, you can trade in large blocks, which opens the door for more opportunities. Most trading is already done through the use of algos anyway.
While the pit is not a barometer for the entire trading industry, the days of the pit depicted in the movies seem to be over. I'm not one to comment much on the trading industry, but this seems like a big moment in signaling the future of the industry (please someone correct me if I'm wrong). I would love to hear from current/former traders, particularly anyone that has had experience in the pit. Is the closing of these venues a signal, or just noise?
http://www.nytimes.com/2015/03/25/business/dealbook/as-silence-falls-on…
I can't imagine them closing the doors completely as there are still lots of trades going on that can't be done on electronic trading platforms that have to be done on the floor. I do these types of orders on a daily basis pretty much so it'll be different doing those a different way.
I went to the CBOT last July and it was a pretty cool experience getting a tour of the floor. I wish I would have been able to see the craziness of it in its heyday. I even got to meet Rick Santerelli (SP?) before he was about to go on camera. And then again in the elevator.
As long as Ceres doesn't close down, I'm fine with it. It's where you learn to drink like a man. Bourbon and coke? Sure. Here's four fingers of bourbon with a can of coke. $6.
Went there after I found out I failed CFA level II, so was at like noon on a Tuesday. Had a few of those before the train ride home. lol enjoyed that place.
I was there celebrating passing level I lastsummer and will undoubtedly be there when I fail level II this summer.
I would be in the same boat, passed level II last summer, onto level III, live in central IL now though. I am doing the Schweser 3 day review in Chicago at the end of next month though, maybe I should make a trip there on the Friday
Was expected.
Exactly why I didn't go into finance. Times are changing too fast.
It's a miracle they've stayed open this long. Honestly, when is the last time you heard about someone making it big in the pits? There haven't been more than a handful of independents making big money in the pits in over 20 years (or independent futures traders (ie not at hedge funds) for that matter).
It's more of a testament to how resilient certain financial institutions can be than a symptom of a fast-changing financial world.
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