Home / Markets / Markets Analysis / Corn market / CME to ignore lawsuit by floor traders

CME to ignore lawsuit by floor traders

06/25/2012 @ 9:27am

CME Group Inc. (CME) said it will press on with a planned change Monday to the way it calculates closing prices for its benchmark grain markets, despite a last-minute legal challenge from floor traders who fear the move will hurt their business.

The change will take into account both floor-based trading as well as activity on CME's electronic trading system to formulate the price at which corn, soybean and wheat contracts settle at the end of each trading session.

A group of traders on Friday filed a lawsuit in Illinois' Cook County Circuit Court seeking to block the move, which arrives as CME has broadened trading hours for its agricultural markets in response to competition from rival electronic markets.

"We believe the new settlement methodology accurately captures contract value across both the open outcry and electronic trading venues during the settlement period and is fully consistent with our functions as a designated contract market and a derivatives clearing organization," said a spokesman for CME in a statement Monday. He declined to comment on the litigation.

Shares in CME recently were off 1.4% at $268.42.

(END) Dow Jones Newswires

June 25, 2012 10:14 ET (14:14 GMT)

DJ CME Presses On With Grain Pricing Changes Despite Lawsuit->copyright

CancelPost Comment

More Pig Losses Seen, Smithfield Says By: 05/14/2014 @ 7:55am The swine industry is struggling to contain a deadly virus that's sweeping U.S. hog farms…

Senators Turn Up Heat on Railroad Companies By: 05/13/2014 @ 11:39am Four Midwestern U.S. senators add their voices to a growing chorus of farmers, ethanol producers…

Summary of Friday's WASDE Report By: 05/09/2014 @ 2:53pm The following table is provided as a service to Wall Street Journal subscribers in conjunction…

This container should display a .swf file. If not, you may need to upgrade your Flash player.
Ageless Iron TV: Tractors at War