CME Group to stop trading due to coronavirus outbreak

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Mar 12, 2020
  • CME Group announced that trading will stop due to the coronavirus outbreak.
  • The Group's headquarters in Chicago will remain open, but its recent announcement noted that the current situation requires caution.
  • As the virus continues to spread, the New York Stock Exchange plans to continue working, while many other financial companies urged their employees to work remotely, from their homes.

Chicago Mercantile Exchange (CME) Group announced recently that it plans to suspend trading due to coronavirus outbreak, starting on March 13th. The Group, which was the second US company to launch Bitcoin Futures, stated that there is a great need for caution, which led it to the decision.

The move is not particularly surprising, considering that the coronavirus outbreak was officially recognized as a global pandemic. Meanwhile, the financial markets are crashing, and even cryptocurrencies did not withstand the development, as BTC dropped by around 30% since it peaked in February.

The impact of coronavirus in the US

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Chicago Mercantile Exchange is currently the world’s largest exchange for financial derivatives. As such it offers almost anything that traders might desire, including fiat currencies, cryptocurrencies, agricultural products, stock indexes, metals, interest rates, and more.  However, it had decided to suspend trading as a precaution, even though its statement claims that no coronavirus cases were reported on the trading floor or in the Chicago Board of Trade building.

As for when the reopening of the trading floor might happen, the group only noted that it plans to wait for evaluation as more medical guidance on the virus becomes available.

The virus has been impacting countries, services, businesses, and more, around the world. Most flights to and from China have been stopped, entire Italy has been put under quarantine, and closed off to the rest of the world, and the US President Donald Trump even restricted travels between the US and Europe.

Even Walmart in Kentucky announced that it is launching an emergency leave policy after one of its employees was found to be infected. On the other hand, the New York Stock Exchange continues to operate, and it allegedly has no plans to stop trading, despite over 200 confirmed cases of coronavirus in the city itself.

Nasdaq itself is preparing a backup trading floor, as well as a Philadelphia-based data facility that will allow it to stay open during the coronavirus crisis.

And, while CME headquarters will not close, there are many other businesses that are urging their employees to work from home until further notice.

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