Not a chance. It removes the option of "cross trades".
e.g You are a broker who has order to buy 200 and sell 100.
The broker would then buy 100 and then "cross" 100, resulting in 200 bought and 100 sold.
This is critical in open outcry exchanges.
plz, could you explain that for a 5year old? thx
Let's use Corn Futures as our commodity.
Broker X has 2 clients.
Client 1 makes breakfast cereals.
Client 2 is Jo Farmer with 5000 acres of corn that will mature in 2 months.
Client 1 wants to buy 200 tonnes in 2 months.
Client 2 wants to sell 100 tonnes in 2 months.
Broker X enters the market place and offers to buy 100 tonnes.
Broker Y sells him 100 tonnes. Broker X immediately "crosses" 100 tonnes.
The "crossed" trade is a buy and sell at the same price.
Broker X has now bought 200 tonnes and sold 100 tonnes fulfilling both orders.
I was lucky enough to work in the Australian Futures Exchange during the "open out cry" era. "Open out cry" is trading directly with a bunch of people that is monitored by officials who then relay the trades to the outside world.
Imagine 200 people in a circle 30 feet wide all trying to trade. I was on the desk relaying buy and sell orders to the traders in the circle. It was up to the traders to figure out when to "cross" or not.
The movie Trading Places shows this type of exchange. HTH.
And its snout seems to point up
