Friday, October 24, 2008
After a long history of futures and options open outcry trading, MGEX (Minneapolis Grain Exchange or Exchange) is closing its trading pits effective December 19, 2008. The decision to make the transition to exclusively electronic trading was unanimously approved by the MGEX Board of Directors and is pending MGEX ownership approval.Kayvon Pirestani wrote of the "heaving pits of the [Chicago] Board of Trade had the look, smell, and feel of capitalism in its rawest, purest form." But for speed, accuracy and cost, electronic markets have advantages that most of the world has already embraced. MGEX had been a holdout, though the NYMEX and the Chicago exchanges still have open outcry for the time being. In a down market with cost savings aggressively sought, others may soon follow MGEX to electronic trading.
The Exchange�s electronic trading operations on the CME Globex� electronic trading platform will remain unchanged. MGEX will continue to host the cash market from a newly remodeled location in the historic Grain Exchange Building.