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CME expansion a 'defense mechanism'

05/15/2012 @ 8:42am

Expansion of trading hours for grains on CBOT seems aimed at preventing losing volumes to rival ICE, a senior agricultural economist says. Atlanta-based ICE electronic grain futures started Monday.

CME had no choice but to increase trading hours, so that it doesn't lose customers to the new ICE grain futures, says Jay O' Neil, a senior agricultural economist at Kansas State University.

"It is a defense mechanism on part of CME to protect its business and not give it up to another exchange."

The CME Group plans to expand trading duration for CBOT wheat, corn, soybean, soybean meal, soyoil, oats and rice futures to 22 hours, up from 17 hours, from May 21. Several industry groups and traders have urged Commodity Futures Trading Commission to delay the expansion of trading hours by initiating a 30-day public comment to assess the plans. (sameer.mohindru@dowjones.com)

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(END) Dow Jones Newswires
May 15, 2012 07:53 ET (11:53 GMT)
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