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CBOT announces daytime electronic trading for ethanol

Agriculture.com Staff 05/23/2006 @ 10:19am

The Chicago Board of Trade (NYSE:BOT) (CBOT(R)) announced it is set to list its Ethanol futures contract electronically during daytime trading hours starting Wednesday, May 31.

The contract will be available to trade on the Exchange's electronic platform, as well as via open auction, from 9:30 a.m. - 1:15 p.m. (CST). The contract will resume trading electronically from 6:36 p.m. - 6:00 a.m. (CST) daily.

CBOT CEO Bernard W. Dan said, "Given the recent increases in corn-based Ethanol production and attention it is receiving in the market, it is critical to list this contract electronically during daytime trading to expand the contract's availability. The global distribution and speed of our e-cbot platform will provide market participants with real-time bids and offers, creating more value and opportunity."

The CBOT worked collaboratively with ethanol producers and refiners to design an effective vehicle for both price discovery and the management of price volatility within the domestic ethanol market. The CBOT launched the CBOT Ethanol futures contract in March 2005. Employing the most advanced electronic delivery system within the industry, the contract has had successful consecutive deliveries, demonstrating the efficiency of the physical delivery settlement process.

This will be the second CBOT Agricultural futures contract to trade electronically during daytime open auction trading. On May 15, the CBOT listed its South American Soybean futures contract. As announced previously, the CBOT intends to offer the remainder of its Agricultural futures contracts, including Corn, Soybean, Soybean Oil, Soybean Meal, Rough Rice, Wheat and Oat futures, on its electronic trading platform during daytime trading hours beginning August 1, 2006.

The Chicago Board of Trade (NYSE:BOT) (CBOT(R)) announced it is set to list its Ethanol futures contract electronically during daytime trading hours starting Wednesday, May 31.

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