By Michael Hirtzer
CHICAGO, Feb 5 (Reuters) – For tailor Peter Papageorge,
making the vibrant jackets worn by traders on the floors of
exchanges in Chicago and New York used to be the bulk of his
business. Now, it is pretty much a novelty as the old-fashioned
open outcry trading shrivels and dies.
Papageorge’s family founded Peco Inc, based on the southwest
side of Chicago, in 1919. The company bills itself as the
largest manufacturer of the flashy trading jackets that are as
colorful as the language shouted by traders in the pits.
But with brokers increasingly executing trades on computers
and open-outcry deals dwindling, CME Group Inc said on
Wednesday it would close most of the floor’s trading pits by
July.
“It’s a small market now,” Papageorge said, adding that
trading jackets account for only 10 percent of his business, the
rest comprising chef hats, culinary coats, figure skating and
movie costumes.
Indeed, his largest order in the last few years was for 300
jackets for traders at the fictional stock exchange in Gotham
City in the Batman movie “The Dark Knight Rises,” released in
2012.
For much of its 167-year history, the Chicago exchanges have
had dress codes, forcing workers on the trading floor to wear
neckties, collared shirts, suits or sport coats – or a trading
jacket. Noncompliance could result in fines up to $500.
“The philosophy in old days was the exchange wanted us to
look dignified because of the huge companies and major financial
institutions that were involved,” said Joe Ocrant, president of
Oak Investment Group and live cattle futures trader who started
as a runner more than 45 years ago.
As dress codes became more casual, neckties were less
common. The CME Group even allowed jeans on Fridays. But the
trading jackets remained, retaining their tribal-like quality,
with traders from J.P. Morgan in dark green with beige lapels,
Futures International in orange, Jefferies Bache in navy blue.
Chicago brokerage McGathey Commodities has jackets with
orange and blue flames. Trader Scott Shellady is often seen on
TV in a dairy-cow spotted jacket in a pattern previously worn by
his father. Shellady supplies the material for Papageorge.
The jackets can be ordered in 100 percent cotton, or a
cotton-polyester blend. Mesh is popular so traders can keep
cool. After the attacks using airplanes on Sept. 11, 2001,
Papageorge started including an American flag patch on most
jackets.
Some traders are superstitious and refuse to wash their
jacket after a string of good trades.
“Every once in a while we’d slip a trading card in a guys
pocket that said, ‘Change your jacket, you smell,’” said Ocrant,
who wears the burgundy that signifies his exchange membership.
(Additional reporting by Christine Stebbins and Theopolis
Waters; Editing by Lisa Shumaker)