CBOT May Reconsider 21-Hour Grain Trading Cycle

By CnAgri2012-10-22 20:00:10 Print

The Chicago Board of Trade has explored reducing the nearly non-stop grain trading hours it implemented this year, according to a participant in initial conversations with the grain industry. Reuters reports that the CBOT, which is owned by CME Group Inc., is in the listening mode and said it will likely survey market users more broadly about trading hours soon, according to the person, who characterized the discussion so far as "fairly informal."

The exchange expanded its electronic trading cycle to 21 hours a session from 17 in May in response to a threat from rival IntercontinentalExchange Inc., which launched look-alike corn, soy and wheat contracts. However, the threat has turned out to be minimal, as ICE's contracts have failed to attract significant volume.

CME on Wednesday agreed to buy the Kansas City Board of Trade, cementing CME's dominance in world grain futures markets and keeping ICE from gaining an important foothold.

The exchange sounds like they are amenable to changing the closing time for electronic and open-outcry trading to 1:15 p.m. Central time from the current closing time of 2 p.m., according to the person who participated in the talks.

CME does not plan to make any changes until after Jan. 1, the source said.