We present a design exploration for electronic futures exchange which is currently implemented a physical open outcry pit. The goal structure is characterized by competition at the individual level and cooperation at the group level. Individuals compete for trades in order to earn money, but must also agree to undertake a significant number of trades which do not earn them money in order to sus...

Screen-based futures markets are gaining trading volumes at the expense of traditional open outcry floor markets. In comparison with open outcry trading – used on the Chicago Board of Trade (CBOT), the world largest futures market – electronic markets offer enhanced transparency, and greater access to users, who can enter orders directly. Screen markets can also maintain strict time priorities ...

This study examines order flow composition and execution quality for different types of customer orders in six futures pits of the Chicago Mercantile Exchange (CME). We show that off-exchange customers frequently provide liquidity to other traders by submitting limit orders. We also document effective execution costs and turnaround times for customer liquiditydemanding and limit orders. The res...