Chicago Board Options Exchange Expands Pit for S&P 500 Index Option
Mar. 06, 1987
CHICAGO (AP) _ For the second time in two months, the Chicago Board Options Exchange is doubling the size of its trading area for its Standard and Poor's 500 index option.
The move to a new trading floor will take effect Monday, exchange officials said Thursday.
Between 45 and 55 market makers and floor brokers now trade the 500 index options, officials said. That is almost twice as many traders as there were six weeks ago when the pit was expanded because of increased business.
''The necessity of having to accommodate a significantly larger trading crowd in SPX (500 index options) is clear evidence of the strength of the competitive market-maker system, said Alger B. Chapman, CBOE chairman and chief operating officer.
Since April, SPX trading volume has been averaging 24,000 contracts a day, officials said.