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To: Tom Trader who wrote (46531)	6/22/1998 2:05:00 PM
From: Patrick Slevin	Respond to of 58727

Just noticed this from the FT. I too am long at this point. ############################# SATURDAY JUNE 20 1998ÿ Chicago may consider end to open outcry By Paul Solman in London The Chicago Board of Trade, the world's largest futures exchange, is positioning itself for a move to full electronic dealing if its customers demand a switch from traditional open-outcry trading. "We see no reason to change from open-outcry trading, but we will make certain we are ready, so that, if we have to move to electronic dealing, we can," said Pat Arbor, CBOT chairman, yesterday. The CBOT and the Chicago Mercantile Exchange have remained staunch advocates of pit-based, open-outcry trading - despite the rapid move to electronic trading by Europe's largest exchanges, and in the face of plans by rival US groups to establish a new electronic futures exchange. Earlier this month, members of the London International Financial Futures and Options Exchange, which had until recently resisted a move away from open-outcry trading, voted 98 per cent in favour of introducing electronic trading on all contracts by mid-1999. In an interview with the Financial Times in London, Mr Arbor said that the CBOT's existing electronic system, Project A - which at present operates only out of normal trading hours - would be ready for round-the-clock trading by December. Tom Donovan, president, added: "Our [open outcry] trading volumes are rising, which suggests our customers want us to continue with open- outcry trading - but if they want us to move to electronic trading, we will satisfy our customers." The exchange is also co-operating with Eurex - the electronic exchange created by the merger of Deutsche Terminb”rse (DTB) of Germany and Soffex of Switzerland - to develop a global electronic system that will allow the exchanges to trade each other's products. Although the combined system is expected to be based on the system developed by DTB, the CBOT said Project A would not be abandoned. The two exchanges would have their own systems, "but with a common engine". Mr Donovan said yesterday: "By July 1999, the Chicago Board of Trade will have the best open-outcry system in the world and the best electronic trading system in the world." He said the CBOT had also recognised the need to cut costs and improve efficiency in its open-outcry dealing. He said it was using more electronic clerks on the dealing floor, to speed up communications, and was also aiming for "paperless trading". Trading volume figures suggested the exchange's customers were committed to pit-based dealing, Mr Arbor said. He said this year's volumes were 15 per cent ahead of last year's, and the CBOT was on-track for a trade of 280m contracts for 1998. Last year, it traded 243m.