Adios Chicago
Traders Magazine, May 2012
"That proximity to the NYSE and Nasdaq is extremely important," Tilly said, "not so much for the ability to get into the market but rather the feedback of 'When am I out?' The ability to know when you are off the market is equally important."
According to one source, the larger players tend to view the options and equities market as a single ecosystem, centered in New York. "The big guys who tend to have well established New York and Chicago presences have typically seen equity options and the cash equities market as being very New York centric anyway," said Steve Woodyatt, chief executive of Object Trading, a vendor of direct market access tools. "So, this is like bringing home the last plank of the equities market."
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The move is not expected to produce an exodus of firms or workers from Chicago to New York. Because most trading is already done by machines in New Jersey, there will be little need for traders to move from Chicago to New York. There may be some redundancies among technical personnel in Chicago, however, as servers are moved from Chicago to New York.
"We are already doing some planning and moving things there," said Jim Michuda, chief executive of Chicago-based agency brokerage Wolverine Execution Services. "And clearly there will be a couple of people required to support the WEX infrastructure in New York. But as far as development and operations, customer support and trading are concerned, there is no need to move out of Chicago."
CBOE has scheduled connectivity testing in July and August, it told its members in a memo. Then there will be mock trading sessions from August to November. Live trading is slated for the fourth quarter.
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