Market Voices: the tradition of open outcry trading
Discover the main characteristics of this trading modality that was present in brazilian stock exchanges and remains in the imagination of brazilians.
Bovespa trading session (Década de 80) by BovespaMUB3 - Museu da bolsa do Brasil
What was the open outcry trading?
It was the modality in which the trading of products sold on exchanges was done in person by traders. This format lasted for over a century, starting in 1895 and ending in 2009.
Can you hear all that shouting? This apparent chaos was actually composed of gestures and a unique vocabulary developed by traders to ensure agility in buying and selling financial assets.
Open outcry trading pit mosaic by B3MUB3 - Museu da bolsa do Brasil
Over time, open outcry trading went through various models of physical space organization: the corbeille, the airplane, the wheel, and the trading posts. Shall we learn more about them?
BMSP trading session (1954) by BMSPMUB3 - Museu da bolsa do Brasil
Corbeille
Initially, the negotiations took place around a circular mobile structure, popularly known as the corbeille. During these transactions, the director of the trading occupied the center of the structure, while the official brokers positioned themselves around it, and their assistants occupied the outermost ring.
In the video below, former trader Luiz Sposito, known as "Cegonha", explains the dynamics of paper trading in the 1930s conducted in the corbeille.
Airplane
The increase in negotiations required more operators, leading to the replacement of the old corbeille, in 1967, by a steel furniture called "airplane" due to its two-wing shape.
Next, Pedro Paulo Piragibe, former director of Bovespa's trading floor, recalls the beginning of his career, when trading was done in this model.
However, the "airplane" was not well-received, as traders claimed that its design disadvantaged those who were positioned at the "tip of the wing".
Tranding floor in "wheel" shape (1967/1970) by BovespaMUB3 - Museu da bolsa do Brasil
Wheel
Still in 1967, the "airplane" was replaced by a circular structure called the "wheel", a format that was better accepted. However, this configuration was still not ideal as there was a large volume of people and negotiations in the space.
Trading posts
In the 1970s, Bovespa implemented the "trading posts" model, which lasted until the end of open outcry trading. Each trading post, or pit, traded stocks from a specific market segment, allowing for simultaneous trading of different products, such as steelmaking and mining.
In the 1990s, trading posts started to be indicated by marked circles on the floor, as detailed by Fernando Botelho, current Trading Manager at B3, who began his career in the Rio de Janeiro Stock Exchange (BVRJ) trading floor.
BM&F trading session (2007) by BM&FMUB3 - Museu da bolsa do Brasil
In BM&F (Brazilian Mercantile and Futures Exchange), the trading posts were inspired by the pits of the Chicago Exchange, where each pit was dedicated to a specific type of contract.
In the video, Fabio Ciribelli, a trading floor supervisor at BM&F in the 1990s, explains the functioning of the trade pits.
Trading slip from the last open outcry trading day at Bovespa donated by Luiz Masagão Ribeiro. (2005-09-30) by BovespaMUB3 - Museu da bolsa do Brasil
The end of open outcry trading
The gradual advancement of technology, the introduction of computerized systems, and the increase in virtual trading that began in the 1990s brought a definitive end to open outcry trading on June 30, 2009.
More than just a trading method, open outcry trading was a spectacle, a dance of voices and gestures that fueled the capital market and remains present in collective memory to this day.
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B3 EDUCATION AND CULTURE
Presidency
Gilson Finkelsztain
Technical Board
José Ribeiro de Andrade
Chief Financial Officer
André Veiga Milanez
Accounting Department
Tatiana Coimbra Castello Branco
MUB3 – MUSEU DA BOLSA DO BRASIL
General Coordination
Lourdes Silva
Communication
Jaqueline Caires Lima
Anna Carolina de Oliveira Leite
Reference Center
Juliana Carminhola
Lídia Camargo
Pollyana Marin
Acknowledgments
Luiz Masagão Ribeiro
MUB3 declares that it has made every effort to identify and credit the copyright holders on the published photographic images, as well as those who have been photographed. If anyone recognizes your rights over some of these images that have not been correctly identified, please contact the project organization by e-mail pesquisa@mub3.org.br so that we can correct and publish the authorship. MUB3 appreciates the pointing out of omissions and inaccuracies and is available to rectify them.
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