ICE soft settlements

Discussion in 'Ag Futures' started by TraDaToR, Apr 20, 2009.

  1. TraDaToR

    TraDaToR

    Hello,

    I receive piece of exchange info on my platform like "Please be advised that cocoa settlements have been posted".

    What settlement are they talking about? It seems daily settlement is defined by the last 2 minutes before the close but those info are popping up something like 1hour before... What are these settlements?

    I know "Trade At Settlement" orders are available on ICE? Do some of you use it? With which platform?

    Thanks.
     
  2. are you getting these each day?

    Also, I don't think cocoa settles out in last 2 minutes. Not sure of what time frame the "settlement" comes from, but I'm pretty sure its not the last 2 minutes. I think that is true of all the softs, and I know that it is not the case with MGEX wheat.
     
  3. You talking about on Webice?

    I got one for cotton @ 14:33:22 , cotton closes at 14:30

    Cocoa one came across at 12:15:36, cocoa closes @ 2 PM... Dunno

    Wish I could filter these out for certain markets.... I don't really care about the softs, but I check the quotes every now and again...
     
  4. TraDaToR

    TraDaToR

    Yes, I get those each day...

    I got this settlement rule from the rulebook but I can make an error, it's pretty obscure.

    According to electronic section of rulebook, settlements are made according to pit rules:https://www.theice.com/publicdocs/rulebooks/futures_us/4_Floor_Trading.pdf

    Apparently( 4.28 ), it's the volume weighted average of all transactions made during the close and "the close" is defined ( 4.06 ) as the last 2 minutes of trading.

    :confused: :confused:
     
  5. TraDaToR

    TraDaToR

    Yep this one. What is it?
     
  6. TraDaToR

    TraDaToR

    TX,

    How do they settle on MGEX wheat?
     
  7. Settlement on MGEX is the same as the other grains...final period into 1:15, but the market stays open until 1:30 CST for "post settlement"
     
  8. bunkinc

    bunkinc

    Settlements are based on the floor close. Since they no longer have a floor, those settlements are still based on the same hours (i think) or are coordinated with when the options pit closes. Used to be 11:50 for CC.
     
  9. TraDaToR

    TraDaToR

    OK I understand. Thanks Bunkinc.

    I assume TAS orders were in the pit, do they still exist now that it is all electronic?
     
  10. TraDaToR

    TraDaToR

    I asked ICE and you were right, TraderTX and Bunkinc, the settlement period is 11:48 to 11:50 for cocoa.
     
    #10     Apr 22, 2009