CME amends grain-trading plan after industry complains

More Competition

CME, led by Chairman Terrence Duffy and Chief Executive Officer Phupinder S. Gill, initially sought expanded trading in corn, soybeans, wheat, soybean meal, soybean oil, oats and rough rice after Atlanta-based ICE announced plans on April 12 to compete directly with the Chicago grain markets. The CBOT’s corn, soybean and wheat trading jumped more than 13 percent last year, and holdings in the five biggest contracts were valued at $131 billion in March, exchange data show.

The new ICE contracts have yet to dent CBOT’s market share. Electronic trading in ICE’s corn futures for July delivery was 769 contracts yesterday, compared with CBOT’s July futures with 156,078 contracts, exchange data compiled by Bloomberg showed.

Jill Sommers, a CFTC commissioner, said in a statement that she was “pleased” the grain groups and CME were able to resolve their conflict, which may allow the five-person commission “approve the rule changes expeditiously.”

Kansas City

In a separate filing yesterday with the CFTC, the Kansas City Board of Trade withdrew its request for extended hours of 22 hours a day that match those on the CME. The Kansas City exchange resubmitted the plan as a 21-hour trading day with an effective date of May 31.

Wheat futures and options will be traded from 5 p.m. to 2 p.m. Sunday through Friday after implementation, Joseph Ott, the vice president for compliance at the Kansas City Board of Trade, said in the filing. That’s a change from the exchange’s May 2 filing, which specified trading from 5 p.m. to 4 p.m. Sunday to Monday and 6 p.m. to 4 p.m. Monday through Friday.

The resubmission was made so the exchange’s hours would be uniform with the CME hours, Ott said in the filing. An e-mail to Ott and a call to marketing director Shelia Summers weren’t returned.

“CME is planning to extend Globex trading hours for its grain contracts,” the Kansas City exchange said in its filing. The amended plan was filed “in order for KCBT wheat futures and options electronic trading hours to remain consistent with CME grains contracts.”

Bloomberg News

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