Page 27 - Futures Money Machine-Study Session #2

Futures Exchanges

On July 12, 2007, the CBOT merged with the Chicago Mercantile Exchange (CME) to form the CME Group. CBOT and three
other exchanges (CME, NYMEX, and COMEX) now operate as designated contract markets (DCM) of the CME Group.

The decision by CME Group to close most outcry pit traded futures in 2015 ended a 167-year era. Despite bringing closure on
the Wild West arm of Wall Street, where shouting matches and even physical altercations accompanied fortunes being won

and lost, the move to fully electronic trading could have real implications for trading in everything from grain to gold.

CME, the world's largest futures market, closed the open outcry pits for futures on its NYMEX property in New York as well.
The options pits on both floors, where much of the manpower and activity gravitated, will remain open for now.

The New York Stock Exchange, which is owned by the Intercontinental Exchange, still has open outcry trading of equities,
but every few months executives are asked to deny media reports of a floor closing or sale of the Big Board.

The exchange also said open outcry trading of S&P 500 futures will continue on its Chicago floor. Floor trading in those
contracts fell just a small percent , according to the exchange.

Although futures pit trading has been diminished to very low levels, it has not completely disappeared.