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In 1987, the only way Leo Melamed (CME chairman) could get the CME membership to consider electronic trading for futures and options was to nerf it - to only allow electronic trading during off hours, to avoid competition with open outcry pit traders. 1/5
Ten years later, in 1997, he managed to sneak in the launch of the E-Mini contract *during* open outcry hours, almost through the back door - and no one was happy about it.
Unable to bar the contract from trading, existing players tried to force limits on contract size.
2/5
Unable to bar the contract from trading, existing players tried to force limits on contract size.
2/5
It didn't work. Ten years or so after *that*, by 2008, the E-Mini contract was doing ~30 percent of the CME's daily volume (!)
Melamed didn't just see it coming; he was laying groundwork for the transition from open outcry to electronic trading for three decades straight.
3/5
Melamed didn't just see it coming; he was laying groundwork for the transition from open outcry to electronic trading for three decades straight.
3/5
"There are still within our markets those who would ignore these reali-
ties. These souls are simply following historian Barbara Tuchman’s predic-
tion that 'Men will not believe what does not fit in with their plans or suit
their prearrangements.'" 4/5
ties. These souls are simply following historian Barbara Tuchman’s predic-
tion that 'Men will not believe what does not fit in with their plans or suit
their prearrangements.'" 4/5
From 'For Crying Out Loud: From Open Outcry To The Electronic Screen', by Leo Melamed, Chairman Emeritus of the CME https://www.amazon.com/Crying-Out-Loud-Outcry-Electronic/dp/0470229438/
