CME plans to reduce livestock trading hours, study other changes

CME plans to reduce livestock trading hours, study other changes

Working group to review market circuit breakers

The CME Group on Wednesday said it plans to reduce trading hours for its livestock futures and options contracts beginning Feb. 29 and will study other changes for those markets to improve liquidity and address market volatility.

The reduced trading hours will be pending CFTC approval. The affected markets include live cattle, feeder cattle and lean hogs.

The proposed trading hours for Globex trading are 8:30 a.m. (central time) to 1:05 p.m. Monday through Friday. Current hours are 9:05 to 4 p.m. on Monday, 8 a.m. to 4 pm. Tuesday-Thursday, and 8 a.m. to 1:55 p.m. on Friday.

CME plans to reduce livestock trading hours, study other changes

Open outcry options trading will go to 8:30 a.m. to 1:02 p.m. Monday-Friday from the current 9:05 a.m. to 1:02 p.m. on Monday and 8 a.m. to 1:02 p.m. Tuesday-Friday. Daily settlement period and procedures will remain unchanged.

The CME will conduct a public review with cattle customers of the Worthing, South Dakota, delivery point to study if a discount is warranted there for live cattle futures. The review will be in February and potential changes will be announced in this year’s first quarter.

Also, the CME will form a cattle market joint working group with the National Cattlemen's Beef Association “to discuss other possible enhancements to its cattle markets, including, but not limited to, circuit breakers and other measures to further heighten market quality.”

"Nothing is more important to us than the integrity of our markets, which help farmers and ranchers to discover prices and transfer risk," Tim Andriesen, CME Group Managing Director of Agricultural Products, said in a statement. "We believe these actions will further enhance our cattle markets for all participants."

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