Friday, June 5, 2009

Ethanol News | House for E-trading Agriculture and Ethanol Extended by CME

Ethanol News

CME Group Inc announced on Friday it would expand electronic trading of agricultural contracts by 75 minutes, effective July 1, in a move aimed at further boosting business on that platform.

"It allows customers based in Europe more time to trade during trading hours that are most convenient for them," said CME Group spokesperson Mary Haffenberg.

CME said it would extend electronic trading on July 1 by one hour and 15 minutes to 7:15 a.m. CDT (1215 GMT). Electronic trading currently begins at 6 p.m. (2300 GMT) and ends at 6 a.m. (1100 GMT).

The longer hours will be for contracts including corn, wheat, soybeans and ethanol.

"They're trying to capture more business. There are markets open that time of the day and they are meeting the competition," a trader said.

A number of traders said it was another step by the CME, the world's largest derivatives exchange, to eventually offer electronic trading 24 hours a day.

"The exchange thinks it will expand volume, and it might, but I don't think by a lot. But it's another step in their quest toward 24-hour trading," another trader said.

A CME trading floor source said the reason the CME will stop trading at 7:15 a.m. is because of the monthly release of sensitive U.S. Department of Agriculture crop information at 7:30 a.m. CDT.

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