Futures For You by Carley Garner
PIT CLOSURE IMPACT
What impact will the CME’s pit closure have on the average trader?
In early 2015, the Chicago Mercantile Exchange (CME) announced that it would be closing pit trading for all futures contracts in its Chicago and New York operations, with the exception of the full-sized S&P 500 contract and most of its option pits.
The S&P 500 futures contract was the only product that had never been moved to “the screen.” While all other CME futures products traded in both an electronic version and open-outcry version side-by-side, execution in the “big” S&P has always been strictly open outcry. Because of this, many traders moved their speculation from the original S&P contract into the electronically executed emini S&P 500 futures (ES) to avoid the delays and slippage that sometimes came with pit-traded execution...