Aug

29

With the merger of the CBOT and the CME, a physical consolidation of the two exchanges' trading floors will take place with the Merc floor being shuttered. As a result some current open outcry pits will move exclusively to the screen, a move that will likely mean the death of the product in certain cases. Oh Frozen Pork Bellies, how we knew thee.

Ryan Carlson writes:

On Monday, bellies traded only 148 contracts, all in the pit, with an open interest of 710. Not a huge loss for the floor crew.

The meats are funny at the Merc because it's such an old-school crew down there. Walking down to those pits, everyone will eyeball anyone new. Also, they've been trying to push the meats to the screen but they won't go. I've been told that no one will trade with you if you wear a headset (computer trader on other end). Also, I've been told that unless you know people down there, they won't trade with you either.

The power of the CME always flowed from the meat pits, so I've done my best to align my interests with theirs.


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2 Comments so far

  1. James Schroeder on August 29, 2007 12:49 pm

    I tend to agree with you, there is a certain romantic notion lost everytime a pit is closed and a product is moved to the screen. Some people have negative notions of the floor, and the pits, but I suspect these negative feelings should be directed to the people who populate them. The floor is a beautiful place and the pure capitalism that can happen there (when the participants aren’t cheating) is an site to behold.

    In a sense it’s sad to see the Merc’s lower trading floor being converted to office space. One must wonder if some suit will be sitting in the middle of the Cash Dairy Pit someday with nary a clue to the history that took place there, the fortunes won and lost. Perhaps it’s better that way, after all what could be a more fitting monument than to auction this space off to the highest bidder.

  2. Gene on August 30, 2007 3:12 pm

    Wow this is sad. Although I ran a few orders into the belly pit for the most part I was in the currencies (started out as an out-trade clerk and then filling orders). The CME floor was an amazing place.

    Gene

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