CME slaughters pork belly contract

July 19, 2011 07:44 AM

Last week I wrote a blog criticizing a Wall Street Journal headline that related CME Group to its pork belly contract. I noted how connecting the CME Group to the belly contract was a bit of a cliché and an old and tired one at that. CME Group and the futures industry in general moved well past its agricultural roots decades ago and to keep bringing up that comparison is a sign that you are not keeping up with the industry, which is no longer niche but a vital part of our financial landscape. 

The story did say the CME was moving beyond pork bellies but I noted that was akin to saying Ford is moving beyond the Edsel. Duh.

While I was putting together my little rant, I had to go back and do some research as I thought the CME’s pork belly contract had already been delisted. A quick google search showed several year-old editorials talking about the need for it to be pulled as volume and open interest had dwindled down to a handful but I discovered that it was still listed.

This no doubt was due to it historic importance to the institution. But on Friday the CME Group made it official: "Effective close of business today, Friday, July 15, 2011, Frozen Pork Bellies futures and options (tag 1151-SecurityGroup=GPB, Open Outcry symbols PB, KP/JP) will be delisted.”

Some may call it an end of an era but to be honest, that era ended a long time ago.

About the Author

Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange.