After a little haggling and discussion, CME Group is ready to roll with expanded electronic trading hours for its CBOT grain and oilseed futures and options. The new open times will begin Sunday, May 20 for Monday, May 21 trade. The group got approval from the Commodity Futures Trading Commission Friday.
Hours will expand from the current 17 hours per day to 21 hours per day in CME Globex from 5 p.m. to 2 p.m. Central Time Sunday to Friday.
Products included in the expanded hours are CBOT Corn, Mini-Sized Corn, Soybeans, Mini-Sized Soybeans, Wheat, Mini-Sized Wheat, Soybean Meal, Soybean Oil, Rough Rice, Oats, and Ethanol futures and options plus all related calendar spread options and inter-commodity spread options.
Daily settlements will continue to be based on market activity at or around 1:15 p.m. CT each day. Additionally, open-outcry trading hours will continue to operate from 9:30 a.m. to 1:15 p.m. CT Monday to Friday.
Originally, CME Group was considering a 22-hour trading day from 6 p.m. to 4 p.m., but that raised concerns among grain groups that felt the new hours could add significantly to their cost of operation. There is still a concern, however, about USDA reports released during trading hours. While common in the financial market to have that happen, USDA grain reports are more in-depth and require more "study" before traders can move.
There's a worry that in-trade announcements could boost market volatility for traders.
In addition, the Kansas City Board of Trade and MGEX also got clearance for the new longer electronic trading hours starting May 20. KCBT says the hard red winter wheat futures and options contracts will start trading right away.
For all these new contracts, daily settlements will remain at 1:15 p.m. with the close of the CME Group open outcry pit.