A History of Open Outcry Trading: Keeping Open Outcry Alive

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Authors

Ellis, Zach

Issue Date

2003

Type

Thesis

Language

en_US

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Research Projects

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Abstract

My SIP looks into the Chicago Board of Trade (CBOT) and whether or not it should change from an open outcry trading system to one of electronic trading. I researched both systems and looked at recent years of the CBOT to see if electronic trading is having a positive impact on trading volumes. My research suggests that other factors besides changing to electronic trading have a greater impact on trading volumes. Influences such as other commodities markets, other markets in the U.S., and the economy are just a few issues that can cause fluctuations in trading volumes. Between direct comparisons with foreign markets such as the Eurex market and also regressions involving different factors it is shown that electronic trading does indeed not have the impact that it was once thought to have. Due to all these factors the CBOT should not abandon its open outcry system but instead allow for both systems to work in harmony.

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41 p.

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U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.

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