CBOT Announces Increased Efficiency Of Open Auction Trading

The Chicago Board of Trade (CBOT) announced today its successful launch of an Exchange-wide initiative to improve the efficiency of open auction trading on its trading floors. Designed to create a more automated trading environment, the initiative employs the latest technology that facilitates real-time trade confirmations and near-real-time trade matching on the trading floor.

CBOT Chief Operating Officer Bryan Durkin said, “The CBOT’s initiative takes open auction trading to a new level, bringing greater speed and efficiency to the electronic order routing process. Customers will benefit from straight-through processing, which results in faster fills of orders, and from instant trade matching. This initiative significantly enhances the trading environment at the Exchange, meeting the demands of our customers worldwide who continue to turn to the CBOT’s transparent, open and liquid markets to manage risk.”

The CBOT’s initiative combines a trade matching engine and the functionality of the Exchange’s existing hand-held technology and order routing devices, allowing traders to communicate with each other through the devices. Trades entered through the devices are checked immediately and sent directly to the trade matching engine, which quickly matches trades and sends them automatically to clearing for final processing.