I am pleased to know that Tribune editors are not the policymakers at Chicago Mercantile Exchange Inc. As a CME shareholder, and one of the individuals you have characterized as “hoarse, sweaty middlemen,” I would like to point out that CME is transitioning to a screen-based trading infrastructure in a measured and, to date, highly successful manner. This opinion is obviously shared by others in the financial community, evidenced by CME share prices.
Among other aspects of market dynamics, you obviously fail to understand that many listed derivative contracts on CME (and both the Chicago Board of Trade and Chicago Board Options Exchange) do not carry the volume and open interest necessary to make them more viable on an electronic platform.
Yes, in these contracts, the old horse-and-buggy method of shouting and scribbling remains the most efficient method for price discovery and risk management.
CME takes its commitment to offer retail and institutional market users fair and orderly markets for such less active contracts quite seriously. Not only is CME aware of a careful and deliberate transition of its marketplace, it is attempting to transition thousands of Chicago jobs through its training and education facilities. These are concerns that cannot be addressed in a rush to transition.
