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

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

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

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
05/24DJTERRENCE DUFFY : CME Chairman and CEO Terrence Duffy Suffers Collapsed Lung
05/24 CME GROUP INC. : Announces Preliminary Results from its 2017 Annual Meeting of S..
05/23 CME : Declares Dividend
05/22DJCME : Reaps the Benefits of Its Interest-Rates Empire
05/15 CME : Announces Record Open Interest of 125.7 Million Contracts
05/12 CME GROUP : Announces Record Open Interest of 125.7 Million Contracts
05/04 CME : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF..
05/02 CME : April barometer shows slight uptick in producer sentiment
05/02 CME GROUP : Reached Average Daily Volume of 16.3 Million Contracts in April 2017..
04/28 CME GROUP INC. : Reports Strong First Quarter 2017 Financial Results
More news
Sector news : Financial & Commodity Market Operators - NEC
05/24 EXCLUSIVE : London's gold benchmark hit by volatility after banks exit
05/23DJCITIGROUP : Nasdaq Team Up -- WSJ
05/22DJCITIGROUP : to Tap Nasdaq for Blockchain Payment Technology
05/22 DEUTSCHE BOERSE : CEO seeks end to insider trading probe - Handelsblatt
05/17 DEUTSCHE BOERSE : CEO says no big mergers on the cards for now
More sector news : Financial & Commodity Market Operators - NEC
News from SeekingAlpha
05/24 CME declares $0.66 dividend
05/23 Nobody Gives Investors What They Want.
05/21 CME Group And Nasdaq Inc. Can Win Big With Blockchain
05/19 CME Group Inc. 2017 Q1 - Results - Earnings Call Slides
05/18 'FIXING' LIBOR : Derivatives Fratricide
Advertisement
Financials ($)
Sales 2017 3 740 M
EBIT 2017 2 491 M
Net income 2017 1 639 M
Debt 2017 231 M
Yield 2017 4,96%
P/E ratio 2017 24,98
P/E ratio 2018 22,46
EV / Sales 2017 10,8x
EV / Sales 2018 10,2x
Capitalization 40 017 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
TrendsNeutralNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 128 $
Spread / Average Target 8,5%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Terrence A. Duffy Executive Chairman & Chief Executive Officer
Bryan T. Durkin 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 INC2.47%39 725
INTERCONTINENTAL EXCHA..6.24%35 204
HONG KONG EXCHANGES AN..5.87%30 880
DEUTSCHE BOERSE AG19.18%19 420
LONDON STOCK EXCHANGE ..17.47%15 582
INTERACTIVE BROKERS GR..-4.55%14 318
More Results