CBOE Trading Floor

[BMK]

Options are different than outrights. Even electronically traded options there is still a lot of chat and voice

What are you talking about?

Outright? What does that mean? Are you referring to the underlying security or index of an option?

And what do you mean by voice and chat?

The simple fact is that most trades of stock, options, and futures are now processd through electronic platforms that do not involve one person talking to another, whether by voice, text, e-mail, or anything else. That doesn't mean there is no human involvement. Market makers and other industry professionals enter bids and offers into electronic systems. But most trading does not involve voice or text communication.

 

[SunTrader]

 

[ETJ]

The CBOE floor existed until the height of Covid. Back then the last pit was for SPX and VIX.
Does it make the CBOE money or should the question be more money than the same products trading electronically? These are monopoly products - so every trade has a fee embedded in it plus there is synergy between the options and futures so somewhat of a plus to have it all tougher. Does pit trading make more than electronic trading? The argument can be made both ways, but everyone involved in the products is paying the overhead. Are physical floor brokers a plus? Frequently and especially if doing cross-market spreading or you want to really hide an order. Can the new ProCustomer benefit from the pit? Again, if there are synergies it becomes a big plus.
The BOX also runs a smaller trading area for synergies in spread trading. It is rarely occupied.

The CBOE pit has numerous independents and groups - it also has most, if not all of the vol. shops.

The crowd wanted it.

 

[2rosy]

What are you talking about?

Outright? What does that mean? Are you referring to the underlying security or index of an option?

And what do you mean by voice and chat?

The simple fact is that most trades of stock, options, and futures are now processd through electronic platforms that do not involve one person talking to another, whether by voice, text, e-mail, or anything else. That doesn't mean there is no human involvement. Market makers and other industry professionals enter bids and offers into electronic systems. But most trading does not involve voice or text communication.

I see a lot of chat, rfqs, broker shows flying by. Turrets still used too. But I am not an elite trader.