The Spread: Reopened for Business

Matt Raebel

Matt Raebel


This week on The Spread, Cboe reopens its doors to resume hybrid trading, FIA’s Walt Lukken invites you to a virtual IDX, and more.

Produced by Mike Forrester.


Welcome to The Spread, where we’re always open for business. I’m Matt Raebel. The NYSE opened several options trading floors this week, but only to a limited number of designated market makers, so the floors were still a lot more quiet than normal. Also, apparently the closure provided some interesting opportunities to compare market performance with and without floor traders; two studies were published recently by the University of Illinois at Chicago and the University of Utah, respectively. While the University of Illinois, Chicago study concluded that indicative prices from the NYSE’s imbalance feed become better predictors when the floor is closed, the University of Utah study found the presence of floor traders has a positive impact on market quality. It looks like we’re still a long way from a robot apocalypse totally replacing floor traders – some things are still just better with a human touch. Cboe also opened its doors this week of course, resuming hybrid open outcry and electronic exchange trading. Things aren’t one hundred percent back to normal, but Cboe has adopted stringent safety procedures, including mandatory face masks, medical screenings at all building entrances, and enhanced daily cleaning and sanitizing procedures – everything but requiring traders to work the floor wearing giant ziplock bags. Cboe went electronic when the quarantine began March 16. Luckily, the exchange had been beefing up their data and technology services with the acquisition of several tech firms, including Trade Alert. JLN Contributing Editor Suzanne Cosgrove interviewed Catherine Clay, Cboe’s senior vice president and head of the exchange’s relatively new information solutions division, about how Cboe is working to improve its real-time data and analytics services for customers. You can check out the full audio interview on our website, John Lothian News dot com. FIA President and CEO Walt Lukken wants you to attend IDX-V, a virtual version of IDX, from June 23 to 25. John Lothian News edited and published a video this week of Lukken personally inviting prospective attendees to the show. Lukken says the show will be a great opportunity to hear from industry leaders about lessons learned from the past few months. The good news is that making the show totally virtual makes it more affordable to attend. The better news is that Lukken got out of his laundry room office to film the video. That’s gonna do it for this week. Thanks for watching, stay safe out there, and happy trading.



NYSE to reopen trading floor to some market makers
Hayley McDowell – The Trade

“When One Floor Closes…”: The Empirical Evidence on The NYSE Floor Closure
Jeff Bacidore – Traders Magazine

Does Floor Trading Matter?
Brogaard, Ringgenberg, and Roesch (2020)

Vestigial Tails: Floor Brokers at the Close in Modern Electronic Markets
Hu and Murphy (2020)

Cboe Global Markets Reopens Chicago Trading Floor
Cboe (press release)

Catherine Clay: Cboe’s Information Solutions Using Data Tools To Build Business
Suzanne Cosgrove – JLN

Walt Lukken Invites You To Attend FIA IDX-V
John Lothian – JLN

John Lothian Newsletter

Today’s Newsletter

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From Dutch Tulips to Internet Stocks, Bubbles Often Burst

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Past The Spread Episodes

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