Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nasdaq  >  CME Group Inc    CME

Delayed Quote. Delayed  - 09/27 10:00:00 pm
105.71 USD   +0.42%
09/27 CME GROUP : to Transition Dairy Spot Call to CME Direct Auction Plat..
09/23 CME : Named 'Exchange of the Year' by GlobalCapital
09/21 CME GROUP : Named "Exchange of the Year" by GlobalCapital
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

CME Group fires back at ICE with 22-hour grains trade

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/02/2012 | 02:22am CEST

CME Group (>> CME Group Inc.) on Tuesday told Iowa farmers, Chicago brokers and huge global hedge funds to brace for a longer, more intense trading day, as it announced plans for nearly round-the-clock grains trading to fend off pressure from arch-rival IntercontinentalExchange (>> IntercontinentalExchange, Inc.).

CME Group (>> CME Group Inc.) on Tuesday told Iowa farmers, Chicago brokers and huge global hedge funds to brace for a longer, more intense trading day, as it announced plans for nearly round-the-clock grains trading to fend off pressure from arch-rival IntercontinentalExchange (>> IntercontinentalExchange, Inc.).

The CME's Chicago Board of Trade, a bastion of trading tradition and center of the global grain world, will move all of its grain and soybean complex futures and options contracts to a 22-hour trading day starting May 14, it said, confirming a Reuters report and trade rumors that circulated on Monday.

With electronic trading now to run continuously from 6 p.m. to 4 p.m. central time the next day, Monday to Friday, dealers will for the first time have the opportunity to trade immediately after some of the market's most important data: U.S. Agriculture Department export figures and monthly fundamental reports.

"Customers are looking to manage their price risk in our deep, liquid markets during market-moving events like USDA crop reports," Tim Andriesen, managing director of CME's Agricultural Commodities and Alternative Investments, said in a statement.

Until now, CME had abided by the long-standing desire among many of the industry's veterans to keep the market shut during the early morning hours, giving traders the opportunity to consider the often complex reports at some leisure.

But many of the market's newer entrants, such as hedge funds, have quietly pressed to end some of those traditions, anxious for more trading opportunities, while even some large commercial users have rued the fact that late-day cargo deals cannot be hedged. An over-the-counter swaps market offered limited access.

Archer Daniels Midland Co (>> Archer Daniels Midland Company), one of the world's largest grain traders and processors, welcomed the longer trading day.

"We trade in cash markets all over the world, all hours of the day, so the extension will allow us additional opportunity to manage our risk," ADM spokeswoman Jackie Anderson said.

ICE PUSH

Atlanta-based ICE may have provided the final push to CME last month, when it announced plans to challenge Chicago's iron grip on grains markets by listing look-alike wheat, corn and soy contracts -- on a 22-hour basis.

Most other major commodity exchanges, including the CME's New York Mercantile Exchange (NYMEX), had already shifted to near 24-hour trading cycles as China's rise spurred demand for Asia-hours activity, while hedge funds and high-frequency traders clamored for greater access.

But denizens of CME's hallowed CBOT trading floor -- which will continue to trade during the same open outcry hours of 9:30 a.m. to 1:15 p.m. central time -- had resisted the move.

They said it will give a leg-up to large, speculative traders off the floor who have deep pockets to trade and advanced computer systems to rapidly place orders.

"I don't think it's a win for anybody," said Roy Huckabay, a veteran of the Chicago markets and analyst for the Linn Group, about the longer hours. "It's a defensive move by the CME. That's all it is."

ICE has declined to comment on CME's plan for expanded hours.

The overhaul comes as CME is approaching the end of a five-year period during which five people, including three CBOT directors, had veto rights over rule changes at the exchange.

The group was given the veto power in 2007 as part of revised terms for the CME-CBOT merger agreement to provide additional value to all CBOT Holdings shareholders.

(Writing by Jonathan Leff; Reporting by Tom Polansek, Karl Plume and Julie Ingwerson; Editing by Bob Burgdorfer)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CME GROUP INC
09/27 CME GROUP : to Transition Dairy Spot Call to CME Direct Auction Platform
09/23 CME : Named 'Exchange of the Year' by GlobalCapital
09/21 CME GROUP : Named "Exchange of the Year" by GlobalCapital
09/21DJStocks Rally on Hopes for Growth
09/16 CME GROUP INC. : Announces Third-Quarter 2016 Earnings Release, Conference Call
09/16 CME : Announces First Trades of New EU Wheat Futures Contract
09/15 CME : Chief Financial Officer to Present at UBS Best of Americas Conference 2016
09/15 CME GROUP : Announces Launch of First-Ever Precious Metals Spread and Ratio Futu..
09/13 CME GROUP INC. : Announces Third-Quarter 2016 Earnings Release, Conference Call
09/13 CME GROUP : Announces First Trades of New EU Wheat Futures Contract
More news
Sector news : Financial & Commodity Market Operators - NEC
09/27 LONDON STOCK EXCHANGE : Deutsche Boerse Asia plans sidelined by LSE merger effor..
09/26 CBOE to buy BATS for $3.2 billion in latest exchange deal
09/23DJMARKETAXESS : Electronifie Considers Options Including Sale
09/23 LONDON STOCK EXCHANGE : Swiss, German share trade settlement houses team up to c..
09/21DJToronto Exchange Operator to Cut 10% of Workforce
More sector news : Financial & Commodity Market Operators - NEC
News from SeekingAlpha
09/22 INSIDERINSIGHTS.COM DAILY ROUND UP 9 : Eigi, chk, nvax
09/21 BANK DERIVATIVES DEALING : The Big Banks Cry Wolf
09/07 THE CHICAGO STOCK EXCHANGE : A Different Speed Bump Changes Everything
09/02 CME Group August volume slips from a year ago
08/31 CME Group gets price target boost
Advertisement
Financials ($)
Sales 2016 3 558 M
EBIT 2016 2 294 M
Net income 2016 1 457 M
Debt 2016 -
Yield 2016 4,50%
P/E ratio 2016 24,92
P/E ratio 2017 22,51
Capi. / Sales 2016 10,0x
Capi. / Sales 2017 9,51x
Capitalization 35 671 M
More Financials
Chart CME GROUP INC
Duration : Period :
CME Group Inc Technical Analysis Chart | CME | US12572Q1058 | 4-Traders
Full-screen chart
Technical analysis trends CME GROUP INC
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 109 $
Spread / Average Target 3,8%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Phupinder S. Gill Chief Executive Officer & Director
Terrence A. Duffy Executive Chairman & President
Julie Holzrichter Chief Operating Officer
John W. Pietrowicz Chief Financial Officer
Kevin D. Kometer Chief Information Officer & Senior MD
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CME GROUP INC16.19%35 671
INTERCONTINENTAL EXCHA..6.94%32 653
HONG KONG EXCHANGES AN..4.15%32 049
FIDELITY NATIONAL INFO..26.85%25 200
DEUTSCHE BOERSE AG-10.15%15 871
INTERACTIVE BROKERS GR..-18.90%14 509
More Results