Closing Time for the Pits

A long standing tradition in Chicago is officially coming to a close, with the CME starting to shutter its pits starting Monday, July 6th (was supposed to be today, but they delayed it. Maybe the ‘pit closer’ had the 4th of July weekend off, and they didn’t realize that until last minute).

What started as a way for farmers (both grains and pigs) to hedge their crops, boomed into a full blown, career opportunity for those willing to take on “the pits”. Now, after more than a century (167 years to be exact), most of the trading is done online – with the trading pits looking like an old mining town to those who saw them in their full glory in the early 90s.

Electronic Pits Chart(Disclaimer: Past performance is not necessarily indicative of future results)
Chart Courtesy: Crains Chicago

Suffice it to say, this is more than just a business decision to those who cut their teeth on the trading floors. This is the end of an important piece of the entrepreneurial cycle in Chicago. This is the end of a proving ground for new young trading talent. This is the end of a brotherhood (and sisterhood) of close friends who shared the joys and pain of making money in real time together. Life will go on. Futures trading will go on. But the trading lifestyle (the good and the bad) and ability for working class kids to make something of themselves based on street smarts and hustle, not an Ivy league degree – will forever change. How that changes the rest of the industry, if at all, remains to be seen.

Here’s some of the best articles we’ve found about the glory days of the trading pits. Enjoy the read over the holiday weekend.

  • Interactive: Closing Time: Stories from Chicago’s Famed Trading Floors – (Crains Chicago)
  • Closing time for Chicago’s trading pits – (WBEZ)
  • What Chicago Loses by Closing the CME’s Futures Pits – (Chicago Magazine)
  • CME Group’s decision heralds end of an era – (Futures Magazine)
  • As Silence Falls on Chicago Trading Pits, a Working-Class Portal Also Closes – (New York Times)
  • End of an Era as CME to Close Almost All Floor Trading for Futures – (Wall Street Journal)

One comment

  1. […] The implications of closing the CME ($CME) trading pits. (managed-futures-blog.attaincapital) […]

Write a Comment

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

logo