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The Chicago trading floor is set to close on Friday, the 13th of March 2020, due to COVID-19 risks. The decision has been revealed by the CME Group.
The Chicago trading floor is set close. Sources say that the operator of the floor CME Group indicated that it will close on Friday the 13th of March.
The floor is reportedly being closed to reduce the risk of spreading the virus. Gatherings in large places pose a higher risk of spreading it. This is of course based on the advice of medical experts.
The CME group is also the second group to launch Bitcoin futures in the United States.
Chicago Trading Floor Is to Close but Globex Trading Continues
Many fear that the closure will affect the instruments traded on the floor. The reverse is the case though. The trading of instruments will continue on the CME Globex. It’s just the physical interactions on the floor that will be suspended for now. The company’s corporate headquarters will remain open too.
This also comes as the financial markets are reeling from the effects of COVID-19. The disease has taken on a new dimension. The World Health Organization has recently declared that the COVID-19 situation is now a pandemic. This is due to the levels of infections and deaths occurring at the moment.
Being the first Major U.S. exchange floor to shut down, we could be seeing the emergence of a pattern if global markets continue to tank. Other U.S. exchanges are also taking the right steps at being safe.
Sources say that the floor members will receive more information including questions and answers tomorrow. This session will reportedly cover how the Globex will operate. It is expected by many that the trading, execution and other mission-critical operations will be discussed.
Working Remotely Is on Rise
This comes as more companies are advising and instructing workers to work remotely. Major cryptocurrency firms aren’t left out of this. Sources say that Coinbase has already informed its employees to do just about everything remotely. Crypto analytics firm Mesari has also reportedly done so too. Crypto pioneers Tyler and Cameron Winklevoss have also reportedly joined the call for working remotely. That is until things countdown.
In other countries, major shutdowns are either expected or are already happening. Italy’s national shutdown is one such example.
Major events are already either being canceled or postponed across the globe. Market indices are dropping fast. Commodities are also in the RedZone. This has affected all facets of many businesses. World governments are already shutting down global supply chains.
Many analysts have believed that once the financial world begins to close up shop, then we all might expect a global depression. Some think that this will happen sooner than we think. Others think that it will happen in a month or two if the bad news continues. One thing is certain: in the absence of effective treatment and a cure the markets will remain volatile.