Reducing mass gatherings globally has become a standard precaution following the continued spread of the coronavirus. Multiple cancellations followed after March 1st when the World Health Organization declared COVID-19 as a global pandemic. It prompted the CME Group to announce that the Chicago Trading Floor will close staring March 13th. This decision was made after the CME Group was advised by medical professionals in the Chicago Region.
It should be noted that the digital variation, CME Globex, will continue to be operational going forward. Considering that the overwhelming amount of Chicago traders have success to CME Globex, there aren’t concerns that this respective market will receive significant declines like the London or New York Stock Exchanges. Chicago collapsing would indicate a global economy declining at rapid percentages.
The CME Group held a public advisory announcement to employees, traders and investors. That announcement reads: “No coronavirus cases have been reported on the trading floor or in the Chicago Board of Trade building. The reopening of the trading floor will be evaluated as more medical guidance on the coronavirus becomes available. The company’s headquarters at 20S Wacker Drive will remain open.”
Traders requiring additional information regarding the coronavirus impact onto the CME Globex Exchange or Chicago Trading Firm have been informed to participate in a Q&A on March 13th. It’ll discuss the required protocols and procedures with this pandemic, with additional questioned being answered in regard to floor products.
Markets Tumbling Downwards
There have been increased cases of the coronavirus throughout London and New York, with trading floors in those respective cities already having being postponed. Banking institutions on the global scale have been forced to alternate their trading methods, hoping that markets won’t decline to similar valuations seen in the 2008 Market Crisis. It should be noted that multiple firms and brokerages operating through CME Globex have already advised their employees to remain home.