Chicago Board of Trade (CBoT)'s most recent S-1 filing with
Securities and Exchange Commission has suggested that
agricultural product trading pits are likely to stay at the
exchange, even as it approaches an IPO. This likelihood left
market participants asking what impact the pits could have on
CBoT's Wall Street road show.
The 21 June S-1 filing by CBoT included a provision that
allows full and associate members to vote on proposals by the
board of directors that would close the agriculture trading
pits or introduce side-by-side electronic and pit trading.
However, to pass such measures would require a majority vote
by full and associate members and, because ag traders still
hold a large number of memberships or shares, there is little
chance of that majority being achieved.
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