Kansas City wheat should complete Chicago move by July 1

Wheat field

The following is from CME Group...

CME Group today announced it will transition open outcry trading of Kansas City Board of Trade (KCBT) hard red winter (HRW) wheat futures and options to its Chicago trading floor beginning Monday, July 1, 2013, pending CFTC review. This transition will accelerate efficiencies and trading opportunities for customers trading both the HRW wheat and CBOT Soft Red Winter (SRW) wheat varieties. KCBT wheat futures and options will continue to trade on CME Globex and be listed by and subject to the rules of KCBT.

The last day of open outcry trading on the KCBT floor will be June 28. CME Group will operate an electronic trading center in the former KCBT floor space until the end of September, providing a place for Kansas City-based traders to execute trades on CME Globex.

"Throughout the integration process, we've remained focused on our customers who manage global price risk associated with these two classes of wheat," said CME Group COO Bryan Durkin. "By moving Kansas City wheat to the Chicago floor later this year, we will make it as efficient as possible for our customers to trade both products and the spread between the two."

In addition, beginning April 15, subject to CFTC approval, customers will benefit from the integration of KCBT clearing services into CME Clearing, which will provide cross-margining and other capital efficiencies for market participants.