open outcry vs electronic

Directional

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Why do the US exchanges soldier on with open outcry trading?

It seems to me that electronic trading is in ascendence and that it will continue to get stronger. the IPE closed its pits in April and switched Brent crude trading over to all electronic. Although they had a few teething troubles with their matching engine, I think its the best decision they ever made, and I cannot see how a pit can compete in the face of electronic exchanges - simply for the fact that any trader anywhere can instantly see the depth of market and have his orders filled in milliseconds. In a pit, only the pit trader can see whats going on, you have to rely on someone else to get you the best fill.

I'll be very interested to see what happens when Nymex open a Brent pit in London to try and compete with the IPE.

What I find incomprehensible are statements like these: "Our international oil industry customers and the London oil trading community have been adamant about their desire to maintain open outcry energy trading with the liquidity and transparency uniquely provided by this forum," Nymex said.
Now I dont know about other traders, but I dont see how a pit contract provides greater transparency than depth of market and time & sales? if anything, for me as a trader it gives way less transparency.

I've participated in a mock pit trading session at the CBOT, and although I'd prepared for it for weeks and had a tutor at the pit holding my hand, i found it hardest of all in the pit to keep track of what the current price actually was!

So with the success of Eurex and LIFFE since they closed their pits, and the burgeoning volumes of IPE in its electronic marketplace, why does the leading markets of capitalism seemingly carry on regardless in what is really becoming an outdated and outmoded tradition?

is there a future for open outcry?

Anyone else of the opinion that nymex will fall flat on its face with a pit competing for brent volume?
 
The pit is like an elite club, could anyone bear to slaughter a dinosaur?

Besides, having both open outcry and electronic doesn't take away the arbitrageurs. On the contrary, if open outcry goes, arbitrageurs may have fewer choices.
 
Gamma, in the days of the pits at LIFFE, could a newcomer to trading join the pit and expect anyone to trade with him?
 
The seats in the US are mainly owned by individuals who will not give up their rights to rip the ass out of your order. :!:
 
I just finished a book titled "legging the spread." An outsider/journalist had a friend that traded in the pits at the merc and got hired as his clerk for a couple of years so that she could get enough info to write the book. It is a series of little short stories about all the different aspects of pit trading. I found it fascinating.
JO
 
Open outcry was good for small markets that needed orders to be worked. Electronic is great for shifting large volume. Soon there will be no open outcry markets left.
 
JO

Do you mean you finished writing the book or you finished reading the book?

I don't suppose it's about how to make cheese burgers, is it?
 
Minted money and the truth behind the markets? There is a point the markets can not go beyond!
 
JO,
thats a book I've been meaning to read actually, looks like quite an interesting perspective!
 
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