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CME Traders Strike

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  • Description

    FBN's Jeff Flock explains why some CME traders left the Eurodollar pit to go on strike.

  • Duration 2:21
  • Date

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This transcript is automatically generated

Very much were also following a developing story that's happening -- Chicago right now there's a group of traders.

That went on strike today -- -- Is in the trading pits are now getting the latest updates so this you know see this everyday what do -- what is going on with this particular group -- GAAP.

Share lowest points up the tension in the ongoing tension between the open outcry system and -- trading on the screen you're looking here alive at the Euro dollar options -- it is the largest open outcry pit.

-- remains at the CME.

This morning a number of traders left this Pitt went on strike.

Because of a trade it came into this pit yesterday afternoon it was executed on the screen instead -- in the pit.

These traders maintained that the customer did not get the best price for their trade.

They said they can do it better open outcry they also say it points up.

What happened here in the eurodollar future -- it it joins the options -- you see how few traders are here now well they point out that this is what.

The options -- used to look like it was packed with people all of that -- -- now -- -- the screen a lot of open outright traders say that's really not the best thing for the customer.

Here's what the CME says this was a very large trade they point out -- large block trade that they said it was important to execute all in one take.

He said we -- -- the CME this morning told us we have a number of market makers continuing to make markets and eurodollar options that is to say it wasn't a massive strike.

The trading question was managed by longstanding rules and processes it was legitimate and a well managed trade which was executed within one -- of the market.

And in one trade within one tick tick of the market essentially admits they didn't get the best price but the customer wanted.

It to be executed all at once rather than brought him you know the reason this -- is still big Cheryl is because options tend to be very complicated.

It's hard to do them on -- on -- screen but if you get one big trade like that you can but they say well then your your kind of screwing us out of that business.

That should be archery right so and real tension I think and as you said.

As I said look at this -- compared to the the futures this is what it used to look like that's what they're afraid -- but they're gonna do that to the options that.

What's been happening before I cut decades at this point -- that the fight between electronic trading.

And floor trading and up the fight is now in Chicago Jeff Flock thank you very much -- that live report that a -- strike in Chicago.

We'll coming.

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