May 6, 2020
CME says it can't guarantee safety of traders when floor reopens
, Bloomberg News
CME Group Inc. said it can’t guarantee the safety of traders using its options trading floor when they reopen.
The exchange will require anyone willing to resume trading on the options floor to sign a waiver accepting the risks of catching the coronavirus, Chief Executive Officer Terry Duffy said during a shareholder meeting Wednesday. While there’s still no set restart date, the earliest the floor could reopen is three weeks after the stay-at-home order is lifted in the state of Illinois, pending compliance with local, state and federal guidelines. GM
CME closed the floor in March as the deadly virus spread and states across the U.S. put stay-at-home orders in place. There are discussions now about reopening, but since the nature of open outcry prevents social distancing, the bourse will encourage anyone willing to access the floor to consult with their own doctor.
“I cannot stress enough that we will not be able to guarantee the safety of traders, clerks or other trading personnel that choose to access the trading floor,” Duffy told shareholders according to a copy of his remarks on the exchange’s website. “As anyone who has traded in an open outcry pit can attest, there is no way to effectuate social distancing requirements. Solutions that may be practical for other trading environments are unworkable for our trading floors.”
Illinois Governor J.B. Pritzker outlined a five-phase re-opening plan on Tuesday that provides a framework for reopening businesses and other entities. Currently, Illinois is phase 2 of the plan, which includes flattening the rate of infections.
Depending on data, public health officials will help determine when parts of the state can shift to phase 3, which has a stabilizing or declining rate of infections and would allow gatherings of 10 people or less. The next phase allows gatherings of as many as 50 people.
Reopening of the floor will be done in a phased manner, according to the CME, with the eurodollar options pit starting first. The exchange’s statement confirms an earlier report by Bloomberg.
