Derivatives marketplace CME Group Inc (NASDAQ:CME) has heralded the end of an era, with the disclosure of its planned shuttering of its New York trading floor at year end 2016.
CME Group’s Chicago trading floor will remain open for trading of options on futures contracts, as well as for S&P 500 futures contracts.
The closure comes as declining open outcry options volumes on CME Group’s New York trading floor now represent just 0.3% of the company’s overall energy and metals trading volumes. The closure is still subject to CFTC review.
All options products listed with and subject to the rules and regulations of NYMEX and COMEX will be available for trading on CME Globex, and for submission for clearing through CME ClearPort.
Since CME Group announced in Q1 2015 that open outcry futures trading in New York would end last summer, average daily volume for remaining options products traded through open outcry in New York has further declined by 53% to just 7,500 contracts. Futures trading on the New York trading floor was discontinued in July 2015.
In addition, 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.
After open outcry trading in New York ends on December 30, 2016, the company plans to sublease its existing trading floor space, but will retain its existing office space in the building for staff.