How FBI's sting has changed pit life. (Federal Bureau of Investigation's sting operation at Chicago's futures exchanges) (includes related articles) (Trade Trends)

Futures (Cedar Falls, Iowa), June, 1991 by Abbott, Susan; Szala, Ginger

Like the victim of any mugging, the futures industry has wised up, sharpened its street smarts and, perhaps, become a bit paranoid since the high-profile announcement in January 1989 of a federal undercover investigation of pit trading practices at Chicago's futures exchanges.

U.S. exchanges have improved surveillance systems, increased disciplinary authority and tightened their membership requirements. And, at least in Chicago, attitudes in the pit have changed, too.

Traders who used to welcome the "fresh meat" of new traders in the pit do so with wariness and certainly avoid befriending them. Brokerage firms that used to hire the best and brightest now rely more on a job applicant's know personal connections. Traders and firms take great pains...

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