CME Group Inc., the Chicago, Illinois-based world’s largest financial derivatives’ exchange having a revenue of $1.3 billion as of Q3, 2019, with subsidiaries likes of NY Mercantile Exchange, S&P Dow Jones Indices, Dubai Mercantile Exchange and a many more across the five continents, said in a statement late on Wednesday, the 11th of March 2020, that the exchange operator would shut down its Chicago trading floor after business hours on Friday (March 13th) in order to prevent mass-gathering which could exacerbate spreading of an already escalated coronavirus pandemic within the United States.
In point of fact, the coronavirus pandemic, which in 5 to 10 per cent cases could lead to lethal complications such as pneumonia, breathing difficulties or SARS (Severe Acute Respiratory Syndrome), had roiled equity markets across five continents and pushed almost all of the major equity indices in to a bearish territory this week.
Meanwhile, adding that the markets would remain available for electronic trading, CME Group Inc., the owner of Chicago Board of Trade and Chicago Mercantile Exchange as beforementioned said in its Wednesday’s (March 11th) statement, “The reopening of the trading floor will be evaluated as more medical guidance on the coronavirus becomes available,” while addressing to the drawbacks of electronics trading over the narratives of a number of vicious swings in the equity indices across the globe, an option broker at CME floor, PJ Quaid said, “The electronic market fails when the markets get crazy.
Look at Sunday night - violent swings. Market-makers on the screen just turn off their markets when things get bad. The pit does not do that. My customers still believe in the open-outcry market. ”