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marketeye
Veteran Advisor

Pit Trading Hours Expanded

The CME Group announced Friday that it will open the floor at 7:20am CT on certain USDA Report days.

Here is the CME Group press release:

CME Group today announced it will offer expanded floor trading hours in its CBOT grain and oilseed futures and options during major United States Department of Agriculture (USDA) Crop Reports, pending CFTC certification.

 

The floor trading open will be changed to 7:20 a.m. CST, from 9:30 a.m. CST, on mornings of specified reports beginning June 12, 2012.
The major USDA reports that will initiate early opening include:
WASDE
Crop Production
Prospective Plantings
Acreage
The following dates will be affected for the remainder of 2012:
June 12 (WASDE, Crop Production)
June 29 (Acreage)
July 11 (WASDE, Crop Production)
August 10 (WASDE)
September 12 (WASDE, Crop Production)
October 11 (WASDE, Crop Production)
November 9 (WASDE, Crop Production)
December 11 (WASDE, Crop Production)
Products included in the expanded hours are CBOT Corn, Soybeans, Wheat, Soybean Meal, Soybean Oil, Oats, and Rough Rice futures and options.
Open-outcry trading hours will continue to close at the same time, 1:15 p.m. CST Monday to Friday.

 

 

What do you all think of this?

 

Mike

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3 Replies
kraft-t
Senior Advisor

Re: Pit Trading Hours Expanded

Perhaps it means that those that ins will be able to make strategic moves well before the common man knows what is happening.  Previously we could get the number and a analysis of the numbers and the impact it will have on the market before the market opens.

 

 

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ShelladyOptions
Senior Contributor

Re: Pit Trading Hours Expanded

Mike. I think it is a great idea. In a world where 6 to 8 hour trading days or even longer are the norm, I am surprised this took so long.

 

It doesn't necessarily mean we will do more volume but it does mean we will be able to react right away.

 

I think this is a good thing for volatility.

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glenlivet18
Veteran Contributor

Re: Pit Trading Hours Expanded

Do you think this means there will be less chance of a dramatic gap up/down on major report days?  Like maybe instead of a 40-50-60 cent jump like we sometimes see at 9:30, could we now see a much smaller gap and then it works its way up or down? 

 

I just don't like those gaps.  I don't mind a 10-15 cent loss, but when it jumps 50 cents at 9:30...I just can't take that kind of risk. 

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