By Hal Weitzman
Independent futures traders at one of the CME Group's most high-profile
trading pits have walked off the job in a highly unusual protest
against"block trades", large, privately negotiated...
Join the CME Co-Location Services Team for an afternoon of technology
discussions, hardware demos and interactive games from Microsoft, all while
overlooking Chicago from the 99th Floor Skydeck of the...
By Howard Packowitz
CHICAGO -(Dow Jones)- Independent traders staged a walkout Friday of CME
Group Inc. (CME) options on Eurodollar futures, protesting a large,
privately negotiated trade a day earlier.
By Katherine Heires
The cheetahs, as Bart Chilton, a commissioner with the Commodities Futures
Trading Commission, calls high frequency traders, have come under
ever-greater scrutiny from the CFTC and Securities Exchange...
By Marvin G. Perez
IntercontinentalExchange Inc. (ICE) (ICE) plans to offer futures and
options in U.S. grains and oilseeds, expanding competition with CME Group
(CME) (CME) Inc., the leader in agriculture...
By -Electronic futures planned in corn, beans, wheat
Electronic futures planned in corn, beans, wheat
-Move comes as CME manages client backlash over MF Global
-Exchanges have poor record in challenging dominance
By Steven Russolillo
This just in: Trading volume still stinks.
Not withstanding the recent pullback, stocks are up big this year, yet low
levels of volume continue to accompany the rally.
By Peter Orszag
Commodity prices have fluctuated substantially over the past few years. The
controversial question is, are financial speculators to blame?
In general, prices are determined by underlying forces of...
By Alan Kohler
In the Australian Stock Exchange's Sydney data room, which is about the
size of a big lounge room, there are six "cuckoos". These are the banks of
TRADERS WALK OUT OF CME EURODOLLAR PIT TO PROTEST TRADE
By Matthew Leising
Local traders in the CME Group Inc. (CME)'s Eurodollar options pit walked off the job today to protest a block trade yesterday.
"These guys that stand in there all day and make prices would have loved to participate in that particular price, but they weren't able to," Rocco Chierici, a broker at R.J. O'Brien & Associates on the floor of the Chicago Mercantile Exchange, said in a telephone interview.
Prices for the block trades of options on Eurodollar futures were higher than offers in the pit, which wouldn't be allowed in open-outcry trading, Chierici said. Local traders buy and sell for their own account and in the process help add liquidity to a market. Block trades are privately negotiated transactions that are conducted outside the normal pit or via computer-based trading systems used by exchanges.
"There are rules that prohibit that in the pit, but you can circumvent the pit" in a block trade, Chierici said. "I believe they wanted to make the point that the system is not fair."
Six block trades totaling 215,200 options traded at 8:11 a.m. Chicago time yesterday, according to CME Group's website. The trade was rolling positions from April contracts, which expired today, into June contracts.
"The block trade in question was managed by longstanding rules and processes of our exchanges," Michael Shore, a CME Group spokesman, said in an e-mail. "It was a legitimate, well- managed trade, which was executed within one tick of the market and in one trade."
Other traders continued to help buy and sell options on Eurodollars, which are contracts tied to three-month expectations for interest rates, Shore said.
While volume has been down recently, the walk-off cut the number of orders to buy and sell today, Chierici said. "There was a small drop because a lot of the volume is local," he said.
CME Group has seen demand for Eurodollars, once the largest contract by volume, fall as the Federal Reserve has kept its benchmark interest rate near zero since December 2008. Eurodollar options volume last month averaged 811,000 contracts per day, compared with 1.3 million on average in the same month in 2007, according to CME statements.
Empower farmers and ranchers to connect communities through social media platforms.
An engaged community. A collective voice. A chance for agriculture
to work together on a common issue-led by farmers.