The march to fully electronic trading continues with the announcement that the NYBOT which trades coffee, sugar, and cocoa will close its trading floor at the end of February. The NYBOT was bought by ICE, an electronic exchange, in January.
Trading on the floor has dwindled with the introduction of side-by-side electronic trading, so this announcement was expected. The commodity markets have been holdouts for open outcry because of the lower volume and liquidity relative to financial futures, but the growing importance of index trading sealed the fate of the trading floor. Newer market participants do not find the open outcry system helpful and were more comfortable trading from screens. This will shut more of the trading floor at the World Financial Center which is still a relatively new building.
So, what is going to happen to all of the colored trading jackets?
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