On Dec. 19, the Minneapolis Grain Exchange (MGEX) will close its floor trading operation. The trading floor will likely be used for office space and a museum, says Mark G. Bagan, president and chief executive officer.
“Our largest floor locals are actually trading more electronically than by open outcry when it comes to hard red spring wheat,” Bagan says. “Of the top ten, each of them trade more than double the amount electronically as they do by open outcry. They are already making the adjustment.” By bringing together the open outcry and electronic liquidity, Bagan says tighter bid/offer spreads will result, benefiting all participants.
