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.
Open outcry trade has been particularly suited to oil, which is often driven by events.
To assist floor traders with the transition going forward, the company will make every attempt to make booth space available to those who want to trade electronically following the closure of the open outcry futures pits.
settled, will continue to trade in CBOE's open outcry environment under ticker "SPX.
In an announcement ceremony immediately prior to the auction, the five highest bidders, including ties, are invited to participate in the open outcry auction that follows.
Over the next few months, the area where the open outcry trading floor is located will be totally redesigned and included in the Exchange's regular public visitation schedule, which currently utilizes the BM&FBOVESPA space, where visitors receive information about financial market activities and instruction on how the stock and derivatives markets work.
Boyle added that while the traditional Amex options business was 20 percent electronic and 80 percent open outcry, he would like to see those figures reversed, moving to between 70 and 80 percent electronic.
Commodity News for Tomorrow" is emailed to subscribers every afternoon after the CBOT's open outcry markets close for the day.
On Wednesday, December 24, most product groups have abbreviated open outcry trading sessions.
Through a combination of open outcry floor trading and the NYMEX ACCESS(R) and NYMEX ClearPort(R) electronic-trading platforms, a wide range of products--including crude oil, petroleum products, natural gas, coal, electricity, gold, silver, copper, aluminum, and platinum group metals markets--are available virtually 24 hours each day.
31 /PRNewswire-FirstCall/ -- CME Group, the world's largest and most diverse derivatives exchange, will close only the Foreign Exchange and Interest Rate open outcry trading floors on Tuesday, November 11 in observance of Veterans Day.
The ICE announcement follows Nymex's recent bombshell that it has decided to offer side-by-side open outcry and round-the-clock electronic trading of its benchmark, physically settled energy futures contracts.