open outcry

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Open Outcry

A system of trading on an exchange in which members stand on the trading floor and make orders to each other by crying aloud. Some open outcry systems have developed special sign languages so they can make and fill orders without needing to be heard over the noise on the trading floor. All exchanges were originally open outcry, but many have gradually shifted toward electronic trading.

open outcry

A public auction in which trading is conducted by calling out bids and offers. Open outcry retains its popularity on futures and options exchanges such as the Chicago Board of Trade and the New York Board of Trade despite the introduction of electronic trading systems. Some traders contend that open outcry offers better liquidity with the chance to obtain a better price. Compare auction market, dealer market.

Open outcry.

When exchange-based commodities traders shout out their buy and sell orders or use a combination of words and hand signals to negotiate an order, it's known as open outcry.

When someone who shouts an offer to buy and someone who shouts an order to sell name the same price, a deal is struck, and the trade is recorded. Open outcry is one type of auction.

References in periodicals archive ?
To most people, the open outcry method for trading commodities seemed outrageously ridiculous, but it worked.
Under the open outcry system, orders are taken over the telephone by brokers and transmitted to traders in the relevant pit.
We are committed to enhancing open outcry by making it more efficient and competitive by using technology such as OBMS--we encourage other FCMs and brokers to take a look at what this system has to offer.
At 4pm on Friday, June 7, 1996, the final bell was rung for the close of business on the trading floor, ending 108 years of open outcry trading and giving way to a new era of a high-tech, paperless exchange.
In this regard, the open outcry of bids is a form of insurance against threats to the integrity of trading: An auction in real time makes active manipulation more difficult.
Friday New York time, and via open outcry trading from 9:00 a.
Sheldon Good & Company, under its joint venture with DJM, has announced an open outcry auction for a portfolio estate sale of properties in New Jersey that includes three multi-unit residential properties.
Having received support from Oman, the DME is to adopt a Persian Gulf sour crude oil futures contract in an electronic trading platform, with an open outcry system.
INDIA -- At the end of March or early April, the world's first electronic bidding for tea will replace the age-old open outcry system of buying and selling tea at auction centres across India, reports the Economic Times.
The sight of City traders in brightly-coloured jackets waving and screaming at the tops of their voices became a thing of the past yesterday as the Liffe market closed its last open outcry pits in the Square Mile.
The IPE's decision on April 7 to scrap open outcry trading was a high-risk strategy in its battle to fend off competition from NYMEX.