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FuturesBeginner

Pit Session vs Electronic

The comparison between historical open-outcry floor trading (the "pit") and the now-dominant electronic Globex/ICE trading sessions.

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Historically, futures were traded in physical pits — octagonal trading floors where floor brokers and locals used open-outcry (shouting bids and offers with hand signals) to execute trades. The pit session for equity index futures was 8:30 AM–3:15 PM CT, coinciding with the US equity cash session.

The electronic session (Globex) runs 23 hours a day and has absorbed virtually all volume. The CME closed its S&P 500 pit in 2015. Today "regular trading hours" (RTH) — 8:30 AM–3:15 PM CT for equity index futures — refers to the overlap with the NYSE/Nasdaq open, not to any physical pit session.

The RTH vs. extended-hours distinction still matters for data: many technical traders use RTH-only charts to avoid overnight noise and for clean VWAP resets.

#futures#market-structure#history

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