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News: London Metal Exchange proposes end of open outcry
Any thoughts? I never had a chance to visit the pits in Chicago or New York, though it has been on my wish list for a very long time.
The nostalgic part of my does not want to see it go, ever in my lifetime. The pragmatist (and algo) side of me says "Goodbye and do not forget to turn off the lights when you leave!". (or "don't let the door hit your butt on the way out").
I also had the same nostalgic feeling. I think that maybe there is still someone who is old and doesn't feel comfortable with technology or maybe he simply has an edge only in the outcry market. This person lost his job.
Honestly I felt sad, it's the end of an era.
Also it reminded me of all the old businesses that disappeared, like Blockbusters (the movies rental company). We used to rent a movie with friends to share the cost, and spend a nice evening together.
Nowadays Netflix reduced the cost (as the transition from pit to screens reduced transaction costs), but the social aspect of watching a movie together has gone (exactly as the social aspect of trading in the pit).
Linda Bradford-Raschke writes about her transition from pit to electronic trading, which happened because an injury prevented her from working the pit for a while. That was definitely transformative for her trading career, no doubt. I have heard of many pit traders who were never able to successfully make the transition, probably because part of their livelihood was based on scalping points.
Hmmm that's a very thoughtful post. I think technology is great as it makes everything 'easier' but there is always a flip side. And you've just mentioned one of them which won't show up in GDP/productivity stats.
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I never saw a stock exchange but I did get to down to the floor at both the IPE (London Oil) and NYMEX (NY Oil). When it was busy it was pretty amazing. I also have been down to the LME 'Ring' and it's nothing like a futures pit. It's literally a circle of chairs, with the dealers dressed in suits, sat in the chairs, talking back and forwards like its afternoon tea. In reality they are transacting hundreds of millions in metals.
Oh yes. The stories in NY and Chicago about this are unlimited. Guys that go from making real money year after year to being unemployed and eventually end up being painters and such. Many lost everything. Houses, Wives and more.
