CBOE Trading Floor

BMK

BMK

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What a strange posting.


SO did CBOE shut the trading floor down ?!?!?!

Or is CBOE earning tons of money from the trading floor?
 
maxinger said:
What a strange posting.
More...

I'm not sure whether you think my post is strange, or if you are referring to the CBOE press release.

I think it is interesting that open outcry not only still exists, but that the CBOE spent a boatload of money to build a new facility.

I can't cite any data right now, but I'm sure that a substantial majority of trades are now executed through electronic platforms, without any type of open outcry, and that has been the case for many years--not just at the CBOE, but at most or all of the exchanges.

Like many others, I thought it was not if, but when the trading floor would cease to exist.

But it does not look like that is going to happen very soon.
 
BMK said:
I'm not sure whether you think my post is strange, or if you are referring to the CBOE press release.

I think it is interesting that open outcry not only still exists, but that the CBOE spent a boatload of money to build a new facility.

I can't cite any data right now, but I'm sure that a substantial majority of trades are now executed through electronic platforms, without any type of open outcry, and that has been the case for many years--not just at the CBOE, but at most or all of the exchanges.

Like many others, I thought it was not if, but when the trading floor would cease to exist.

But it does not look like that is going to happen very soon.
More...

Your posting #3 should be in posting #1
 
I thought the open outcry trading room was officially shut down a little before covid and then it was brought back for clearing large trades of $5 million and over as far as I can remember. I stand to be corrected. So is this the new floor space to handle the open outcry of the large trades only or is the open outcry completely back to handle everything now instead of machines??

All I heard was all the traders laid off due to the closing of the open outcry had an incredibly difficult time adjusting to retail trading. I guess it's hard to make profits when you don't have cushy bid/ask spread anymore.
 
TheDawn said:
had an incredibly difficult time adjusting to retail trading.
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Professional traders did not have to adjust to retail trading. They had to adjust to trading from a computer instead of open outcry. Trading from a computer, they still have access to systems and tools that most retail traders cannot even imagine.

The adjustment was happening long before COVID.

The attached Bloomberg article has a little bit more information about the new CBOE trading floor that opened in June of 2022. The article confirms what I said earlier in this thread: most orders are now executed through electronic systems, and not on a live, open outcry trading floor.

But apparently there is still demand for face-to-face open outcry trading. For example, the article says that from January through May of 2022, roughly 36% of CBOE index options trades were executed on the floor via open outcry, rather than automation.

The trading floor is not limited to large orders. Sophisticated traders--even those trading in a retail account--can choose to route their orders to a particular exchange, and they can choose the CBOE trading floor if that's what they want. But most retail traders either don't know how to do that, or they choose not to.

NYSE still has a live trading floor. NASDAQ has never had one. It was an electronic exchange from the very beginning.
 

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BMK said:
Professional traders did not have to adjust to retail trading. They had to adjust to trading from a computer instead of open outcry.
More...

That was from an article that I read about traders who were laid off when the open outcry pit closed. I can't find that article now. Anyway...

BMK said:
The adjustment was happening long before COVID.

The attached Bloomberg article has a little bit more information about the new CBOE trading floor that opened in June of 2022. The article confirms what I said earlier in this thread: most orders are now executed through electronic systems, and not on a live, open outcry trading floor.

But apparently there is still demand for face-to-face open outcry trading. For example, the article says that from January through May of 2022, roughly 36% of CBOE index options trades were executed on the floor via open outcry, rather than automation.

The trading floor is not limited to large orders. Sophisticated traders--even those trading in a retail account--can choose to route their orders to a particular exchange, and they can choose the CBOE trading floor if that's what they want. But most retail traders either don't know how to do that, or they choose not to.

NYSE still has a live trading floor. NASDAQ has never had one. It was an electronic exchange from the very beginning.
More...

Well so far I have been using "SMART" as the routing option on IB for options. There is a routing option called "CBOE" there. I guess that's the direct routing to CBOE floor? I will try that next time to see if that improves my execution time and/or price improvement and/or results in lower commission fees. The new trading floor looks nice.
 
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