ICE & NYBOT shut down trading floor
ICE & NYBOT shut down trading floor
The New York Board of Trade is planning to officially shut down its futures pits in the next six months as electronic commodities trading takes over, according to sources familiar with the matter. The move could leave as many as 1K people out of work.
NYBOT plans to shut down futures pits
NEW YORK, Oct 22 (Reuters) - The New York Board of Trade (NYBOT), which has been renamed ICE Futures US, is planning to officially shut down its futures pits in the next six months as electronic commodities trading takes over, the New York Post reported on Monday, citing unnamed sources.
IntercontinentalExchange (ICE.N: Quote, Profile, Research) (ICE) spokeswoman Kelly Loeffler told Reuters that any such move would require a vote by the board, adding that has not taken place.
Under terms of the Nov. 17, 2006, merger agreement between ICE and NYBOT, the floor can only be closed if "the average daily volume of open-outcry trading in any core product or all core products in the aggregate falls below 50 percent of the corresponding 2005 levels."
"Those conditions have been met, but there hasn't been a proposal or a vote," Loeffler said.
Shutting most of the trading floor could leave nearly 1,000 people out of work, the Post reported. The exchange may also abandon its headquarters at the World Financial Center in New York, which is owned by the neighboring New York Mercantile Exchange Inc (NMX.N: Quote, Profile, Research) the paper said.
Atlanta-based ICE, an electronic exchange, acquired NYBOT in January for $1.8 billion, and the following month introduced electronic trading to the traditional open-outcry platform for agricultural commodities.
Electronic volume quickly exceeded expectations, with the bulk of trades for most of the soft commodities currently being done on the screen.
Floor volume currently accounts for no more than 15 percent of total NYBOT trading volume.
ICE shares fell nearly 2 percent to $160.70 in mid-day trading on the the New York Stock Exchange.
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posted by Victor Lloyd Smith @ 12:32 PM
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