One of the first domestic futures exchanges was developed in the late 18th century, as U.S. debt securities traded on the corner of Broad Street and Wall Street. As the Open Outcry system grew, so too did the complexity of financial transactions. Over 200 years later the Open Outcry method is still the backbone of trading. Although, the incorporation of electronic trading into the financial markets exploded during the 1990's, providing traders with a more efficient method of order execution. As electronic trading has expanded, it is clear that the future of trading has involved combinations of both pit and electronic markets. The explosion of electronic trading has prompted speculation that the open outcry system is quickly becoming obsolete. New advances in screen-based trading have forced both traders and exchanges to keep up with rapidly evolving technological developments.
The supporters of electronic exchanges claim that they are faster, cheaper and more efficient for users, and less prone to manipulation by stock specialists and brokers/dealers. Recently, technology and the Internet have enabled individuals who weren't working for a brokerage to directly access the markets. The electronic markets may be phasing out open-outcry transactions and communication.