|
PureBytes Links
Trading Reference Links
|
Dear Prosper & Group,
I visited the CBOT, CBOE, and the CME two summers ago for the first time and
spent collectively a week on the floor. It was indeed an eye-opening experience
that I should have done long before, and I recommend it strongly to anyone
having the remotest desire to become involved with the futures industry.
As you may already know, the exchanges have public galleries, which are on the
side of the floors and one or two floors (perhaps 20 feet) above the trading
floors. The public galleries are open throughout the trading sessions, and I
believe the exchanges offers "tours" of them, in the sense that they will
provide a staff member to walk visitors around the public galleries, give short
speeches about the functions of the exchange, and answer questions. That's all
fine and good, but the action is on the floor, getting a feel of the floor from
the galleries is like kissing your sister, and so the problem is how to get on
the floor yourself.
To my knowledge, and I may be wrong about this, I don't know of any tours on the
floor during market sessions. I found the exchanges to be VERY wary of allowing
visitors on the floor --- there is great security, many uniformed officers,
metal gates to walk through, badges to show, trading jackets to wear, etc. etc.
etc. to get past the threshold and onto the floor. And once on the floor, there
are both uniformed and non-uniformed (ie, plainclothes) officers ubiquitously
walking around, asking questions, ready to escort intruders out on a moments
notice. One interrogated me for having a phone in my hand on the floor and was
firm in telling me "No one besides members is allowed to use a phone on the
floor for any reason" and if I had a problem with that, there's the door. I was
using the phone to listen to the Squawkbox being broadcast by the guy standing
next to me --- that didn't cut it with the plainclothesman at all.
The foregoing having been said, I have found that the easist way to get on the
floor is to ask a broker or other member for a visitor pass. When I was in
Chicago two summers ago, I had arranged with various brokers that I knew to
spend a day on the floor, and collectively that added up to my week there. My
impression is that the exchanges take the position that any visitor on the floor
at the behest of a member is the responsibility of that member, and so the
etiquette seems to be that the visitor is required to tag along with the member
and not to generally be away from or out of his sight --- I occasionally strayed
from my sponsor with his knowledge, and the sponsor told me that if I got picked
up during my excursions, simply to tell the officer that I was a visitor of
"that guy over there." Fortunately, I never had to use that line. Another
problem is that, as I recall, the exchanges limit vistors to a period of no more
than 4 hours on the floor, which is of course less than an entire market session
of any market except for the grains and maybe others, certainly not the bonds or
the stock indeces, which were my main interests. I never figured out whether
this rule was instituted for the benefit of the exchanges of the sponsors, but
when I mentioned to my various sponsors that I would like to stay for the entire
session, they said "no problem" and I got the feeling that if I didn't make a
nuisance of myself, I could stay as long as they did.
I had a great time, and you should too. One thing that became very clear to me,
however, is that being on the floor is largely a matter of standing in a space
of a square foot or two for the duration of the session, with few if any breaks
or places to go, except perhaps occasionally to the head and for lunch during
the "noon balloon." Let me telll you, soon after being on the floor, my feet
began to hurt, so I would recommend wearing the most comfortable and forgiving
shoes that you own. Other than that, talk with your broker or another member,
promise him you will let him do his work and won't be a nuisance, hit him up for
a visitor pass, go, enjoy, take it all in, and learn what you can. It's a great
experience.
Lastly, if you want to do this on the cheap, as I did, you can avoid paying the
$150-200 per night charged by the downtown Chicago hotels by staying at the
local youth hostel, within walking distance to both exchanges, for something
like $20 a night. Hey, all I was looking for was a bed and a shower, and the
thought of paying some $1000 to sleep for a week in downtown Chicago really
frosts me. I was into my trip for $200 for airfare, $100 for room, and maybe
another $100 for food for a week on the floor --- around the cost of one losing
S&P trade. What a deal!!!
Sincerely,
Richard
Prosper wrote:
> Hi,
>
> Do any of you Traders know of any tours that are specifically aimed at
> visiting the Chicago exchanges. I am finally feeling well enough to consider
> traveling there for a visit and I know that larger tour groups sometimes get
> more privilege, guidance, and instruction.
>
> Prosper
|