The editorial “The cost of open outcry,” overlooked the realities that define the Chicago Board of Trade today. Our revolutionary business model, initiated 18 months ago, has enabled the CBOT to effect tremendous change in the industry at large, positioning the exchange as a leader among the world’s futures exchanges.
CBOT seat prices–one of the most telling barometers of an exchange’s success–set several records in recent weeks.
Trading volume and open interest, other clear measures of an exchange’s health, have exploded, setting consecutive records nearly every month of 2004.
Contrary to the editorial’s depiction of an archaic CBOT, electronic trading has been a consistent source of growth for the exchange for 12 years. In fact, on a typical day, nearly 90 percent of trades in CBOT U.S. Treasury futures now are executed electronically, not in the open outcry pit.
The revolution does not end there.
We have completely revitalized our market model.
We altered our trading fee structure, offering customers a more cost-effective way to do business.
We radically reorganized our governance structure, streamlining decision-making processes and heightening our competitive edge.
And we have aggressively leveraged technology to deliver our customers an electronic trading platform with the world’s greatest speed and functionality, enhancing the overall trading experience at the CBOT.
The CBOT’s successes have been a collaborative effort between our members, customers, board of directors and management.
The facts speak for themselves.
