Movie Review: Floored Documentary and Interview
By Geoff Cahayom
It was a quarter past five when I arrived outside the Museum of American Finance. Located in the former Bank of New York Building tucked in the heart of Wall Street, the museum is around the corner from the New York Stock Exchange. On any given evening there are always a handful of tourists taking photographs in front of the exchange; tonight was no exception. Director James Allen Smith was standing outside the entrance, possibly waiting for Joseph Gibbons and Steve Prosniewski–close friends of Smith and producers of his first film, “Floored.” While working as a web designer for a Chicago trading firm Smith was captivated by the culture of the floor and the traders who inhabit the space to trade–not someone else’s money, but their own. “Floored” is Smith’s foray into the film industry.
Ever wonder why there aren’t many films made on the denizens of the trading pit? For all the yelling that traders do, as soon as they hear something about media and interviews they immediately develop a strong case of laryngitis, leaving the rest of us left wondering what “sell one-hundred at a half” means?
James Allen Smith is the director of “Floored,” an exhilarating documentary that delves into the realm of futures trading. Set in the backdrop of the world’s financial derivatives capital—no, not New York—Chicago is home to the Chicago Mercantile Exchange (CME) otherwise known as the “Merc.” For decades thousands of floor traders have made their livelihood on buying and selling everything from corn and wheat to lean hogs and live cattle.
The traders that Smith focuses on are not the hedge fund managers who charge grand management fees for their service. Instead they are self-employed traders known as locals. They are the hunters of the proverbial statement “you eat what you kill.” And now they are a dying breed. Smith juxtaposes traditional floor trading to the more modern electronic trading, sometimes called upstairs trading because of its location off the floor. A trader who would normally sell one hundred at a half–that is, sell one hundred futures contracts at a price between two round numbers (1100.5)– would use hand signals to place an order. Electronic trading is all done in front of a computer screen. There is a discernible characteristic exuded from the successful electronic traders—they are more dispassionate. Electronic traders don’t yell at their screen. They don’t see or speak to the other trader from whom they are buying or selling. And they certainly don’t know if the other traders are nervous about their positions. Transactions are made through the click of the mouse.
What defines the documentary are the traders. Mike Walsh is a tall burly trader who, until his retirement, has been in the business since the 1980’s. His soft spot: hunting animals in the African safari. Walsh has clearly done well for himself over his years trading. Maybe it’s his background that helped him on the floor: little formal education, a gruff attitude, an insatiable desire to win, and a colorful vocabulary, the likes of which can only be found in a David Mamet film—just ask Walsh what he thinks of the market.
On the other end of the spectrum is Jeff Ansani, the once thriving floor clerk is struggling to keep his business. His struggles exemplify that trading is not all about cigars and luxury sports cars. Ansani’s business has been a day-to-day grind. Unlike Walsh who flies to a different continent in pursuit of adventure, Ansani travels to his local golf course in the dead of winter to go a few rounds in his winter parka. Despite his financial situation, Ansani still finds a way to turn on the heat in his house when his son visits, otherwise he prefers his sweater.
Rob Prosniewski is in a similar situation. He continues to trade in the pit knowing that it’s becoming more difficult each day. And though he knows of people who have successfully made the transition to the screen he finds himself taking the riskier trades on the floor. His endeavor shows that so much of trading is psychological. Minor hitches in a trader’s psyche can be the difference between a winning trade or a losing trade, a thriving career or a striving one. For floor veterans Jeff and Rob, the idea of reinventing yourself in the middle of your career is perhaps the hardest trade of all.
In just under 80 minutes Smith delivers an uncensored, educational look into one of America’s most meritocratic institutions. Though I would have liked to see more archived footage of the trading pits from this multi-year project, Smith does include old video of the pits not easily accessible to the public. The pits have often been called the largest petridish because of all the chaos that takes place. Between 8:30 and 3:15 (central time) fortunes will be made and lost. Some traders may go home feeling euphoric as they revel in their winnings while others may go home distraught from their losses. As computer trading continues to gain dominance, floor traders know they need to adapt. Linda Raschke, a highly profiled trader said that the current situation on the floor is an example of “Financial Darwinism.” That is no surprise as trading, both floor and electronic, is a superlative illustration of survival of the fittest.
Floored will be shown in Chicago between January 16- 21 in the Gene Siskel Film Center. Exclusive interview with director James Allen Smith will be released first week of January on Misstrade.net
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