03-05-2013 07:18 AM - edited 03-05-2013 07:22 AM
On Tuesday, the CME Group announced that it will reduce the amount of trading hours for grains and oilseed. Here is the press release:
CME Group announced it will reduce grain and oilseed trading hours following comprehensive outreach to producers, commercial customers, traders and other industry participants who manage their risk in its markets. Pending CFTC review, trading in CBOT grain and oilseed and KCBT markets will be reduced from the current 21 hours, both on the floor and via its CME Globex electronic trading platform, for the Monday, April 8, 2013, trade date.
“Over the past several months, we have received significant customer feedback about the current CBOT grain trading hours,” said Tim Andriesen, Managing Director, Agricultural Commodities and Alternative Investments, CME Group. “As a result, we engaged our customers more formally through one-on-one conversations, focus groups and an online survey, which attracted more than 4,000 responses, to determine what hours best meet their needs. While there were varying opinions about what the modifications to hours should be, we believe these changes balance the needs of our diverse global customers based on their feedback.”
Beginning April 8, electronic and floor trading hours for CBOT Corn, Soybeans, Wheat, Soybean Meal, Soybean Oil, Rough Rice, Oats, and KCBT Wheat futures and options, plus all related CBOT and KCBT calendar spread options and inter-commodity spread options, will be amended as follows:
· Sunday to Friday, electronic trading from 7:00 p.m. to 7:45 a.m. CT
· Monday to Friday, break in electronic trading from 7:45 a.m. to 8:30 a.m. CT
· Monday to Friday, floor and CME Globex trading from 8:30 a.m. to 1:15 p.m. CT
Daily settlements for CME Globex and floor trading of these products will be based on market activity at or around 1:15 p.m. CT each day. Mini-Sized Corn, Mini-Sized Soybeans and Mini-Sized Wheat will continue to trade on CME Globex and on the floor until 1:45 p.m. CT.
I hope this helps,
03-05-2013 08:26 AM
Follow the money. Since the 21 hr trading no wild swings when a report comes out.
Traders can't make money fast enough if the market doesn't gyrate spasticly.
The 1:15 deal is to get them out on the golf course in time for a round. It also gets them out of the building in time to miss the rush hr traffic.
This is just a win win deal. As a farmer "it's for our own good", yea right.
03-05-2013 09:03 AM
"Daily settlements ....... will be based on market activity at or around 1:15 p.m. CT each day."
Is it "normal" for settlements to be based "at or around" a certain time?
Something about that phrase makes me wonder. But then my computer sits on a grassy knoll.
03-05-2013 09:22 AM
I just posed the question to a floor trader, regarding whether they like the hour changes. In his own words:
"Yes Mike!!! This will be better for our markets. By opening earlier we have a chance at doing more European business and who the heck doesn't like getting off earlier every afternoon? This seems to be the floor wide consensus."