CME Group officials announced that it will close its New York trading floor by the end of the year. The reason is a familiar one to all industry oparticipants: shrinking volume.
According to a press statement, the exchange operator did not mince words for the reason for the trading floor closure: As declining open outcry options volume on CME Group’s New York trading floor now represents just 0.3 percent of the company’s overall energy and metals trading volumes, CME Group will close its New York trading floor at year-end, subject to CFTC review, reads the release.
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CME officials say that all options products listed with and subject to rules and regulations of NYMEX and COMEX will be available for trading on CME Globex. Also, the Chicago trading floor will remain open for trading of options on futures contracts, as well as S&P 500 futures contracts, according to Reuters.
This is not the first closure for the exchange operator. Last July, the New York trading floor of CME Group discontinued futures trading.
Per the press release, beginning in Q4 2016, CME Group will make space available for floor traders to transition to electronic trading at the company’s One North End Avenue facility in Battery Park, NY.
The company plans to sublease its existing trading floor space, but will retain its existing office space in the building for staff.
