Home / News / Business news / CME to use electronic trade in June settlements

CME to use electronic trade in June settlements

03/05/2012 @ 10:27am

CME Group Inc. (CME) said Monday it will start incorporating electronic trades into settlement procedures for corn and soybean futures in June, a couple months later than first planned.

CME said the new settlement procedures will use volume-weighted prices both from the open-outcry trade and trading on the exchange's electronic trading platform, Globex.

The exchange first revealed its intent to make the changes in December. At the time, CME said it planned to implement the changes in March or April, and that the changes would include live cattle and lean hogs.

CME said implementation was delayed due to "significant market feedback" following its initial announcement, along with discussions with the Commodity Futures Trading Commission and the need to give the market ample notification of the changes.

CME added that it has not reached a final decision on changes to the livestock futures settlements, and that it is still discussing the matter with the CFTC.

Electronic traders argue that it makes more sense to base settlements on Globex activity since electronic trade volume dwarfs pit trading activity.

Floor traders say pit settlements have played an important role in keeping some traders on the trading floor even as Globex has increasingly dominated trading volume. Some traders are worried the settlement changes will chase more traders off the floor in Chicago, although others say that the floor will remain the best option for traders who want to execute complex options trades.


-By Ian Berry, Dow Jones Newswires; 312-750-4072; ian.berry@dowjones.com
(END) Dow Jones Newswires
March 05, 2012 10:58 ET (15:58 GMT)
DJ CME Group To Use Electronic Trade In June Corn, Soy Settlements->copyright


CancelPost Comment
MORE FROM DOW JONES NEWSWIRES more +

Wheat futures rise as cold, drought threaten… By: 04/17/2014 @ 3:51pm Wheat futures rose for the third time in four sessions on speculation that cold weather earlier…

Ukraine Upheaval Sparks Business Concerns By: 04/17/2014 @ 1:22pm Escalating military action and sanctions are forcing executives around the globe to map out…

Soybeans hit 8-month highs as processing… By: 04/15/2014 @ 3:31pm Soybeans jumped to the highest price in more than eight months after an industry report showed the…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Big Picture: CME Trading Weather