CHICAGO May 21 CME Group Inc on
Wednesday pushed back against calls for it to close open-outcry
trading if its electronic platform fails, saying that most
traders have access to the pits.
"To close down the floor because the electronic platform
closed down, I don't know why we would do that, unless there was
a circumstance that warranted closing all the markets,"
Executive Chairman Terry Duffy told reporters following the
company's annual meeting.
CME, the world's largest futures market operator, suffered
the worst-ever trading outage on the world's most important
agricultural markets last month when its electronic platform
Last week, the National Grain & Feed Association said CME
should temporarily suspend open-outcry trading if its electronic
trading platform crashes to ensure fair access to markets.
Some brokers in the grain and livestock markets affected by
the electronic outage also have said that CME should close the
pits because electronic trading accounts for roughly 95 percent
of the volume in agricultural futures.
However, most market participants are able to access
open-outcry trading, Duffy said.
"As long as we're willing to offer a vibrant two options, I
think that's the smart thing for us to do," Duffy said about
keeping the pits open during an electronic outage.
"If we felt that nobody had access to the marketplace, then
we'd have to re-evaluate that situation," he added. "To my
knowledge clearing firms work very collaboratively together on
A Reuters analysis of CME trading data showed that pit
traders largely succeeded in replacing screen trade in some
(Editing by Steve Orlofsky)