Chicago Board of Trade (CBoT) launched its full-sized gold
and silver contracts last Wednesday in what is becoming a
compelling electronic trading versus open outcry competition
between CBoT and New York Mercantile Exchange (Nymex).
The precious metals on CBoT's electronic trading platform
e-CBoT traded modestly on day one. Full-sized gold futures
traded 956 contracts while 238 silver futures were traded.
Nymex is having a record year for its contracts, with average
daily volume of over 60,000 in gold futures and more than
20,000 in silver futures.
The competition features the same sized contracts on e-CBoT
as those offered at Nymex, which is committed to maintaining
open outcry pits to trade metals and energies. Last Monday,
Nymex rolled out an electronic order routing system called New
York Mercantile Exchange Electronic Order Network, or Neon,
which directs orders directly into the pits. So far one firm,
Prudential Securities, is using Neon. But Nymex officials say
more member firms are connecting, and exchange officials say
there are more technology initiatives in the pipeline that are
designed to enhance trading in the metals and energy pits -
although no specific rollouts have been made public.
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