Yes, and without talking about conspiracies..., I think they had a big influence on where the market was opening after USDA release. And they lost it.
It seems the hedgers won. Why is it that all the "powers that be", do the wrong thing. The Fed engages in endless QE, the media is blatantly biased, now even exchanges take stupid actions. Just received this email from CME. ************************** January 29, 2013 To Our Customers, At CME Group, we are committed to the integrity of our deep and liquid grain markets, and listen intently to feedback from all of our customers. We regret that recent comments in press reports this week were not representative of that commitment. Since implementing extended trading hours in May of 2012, we've received significant customer feedback from a broad cross-section of market participants, including through a formal survey we implemented last week. Though our survey is still underway, we have enough of your responses to be able to decide to reduce trading hours for our grain and oilseed markets, pending CFTC approval. However, as there were varying opinions on what the reduced hours should be, we are continuing to vet alternatives with our customer base. We will be communicating more specifics on the revised hours in the coming weeks. In addition, with respect to market pauses during USDA reports, CME Group understands the frustration of many of our customers, and we are open to considering a market pause allowing participants to evaluate the data if all exchanges and trading venues would do the same. We would support a halt, as long as it was unified for all venues, as that would best benefit all customers by ensuring the necessary market liquidity needed for effective price discovery during this time. We recognize the importance of this issue, and we take customer feedback seriously. Our entire organization will continue to work with all of you and other industry participants to ensure efficient markets going forward.
I suggest: 1. All traders send CME emails opposing this 2. All traders move to the ICE if the CME maintains their position to reduce trading hours.
Frankly, why are we traders trading CME grains instead of ICE grains. https://www.theice.com/us_grains.jhtml ICE grains are cash settled which is also another advantage since traders have no interest in taking delivery. ICE also has lower fees. Extended trading hours, making electronic trading available during important events like crop reports All electronic trading Network of dedicated market makers Sub-millisecond transaction times Advanced options technology platform Competitive fees Cash-settled with daily settlement based on CBOT settlement price Cleared at ICE Clear U.S.
That's actually a really good question... I was operating under the assumption that after CBOT expanded trading hours, it was now matching ICE. But am I correct that ... - ICE trades all the way until 5:00 PM CST, but stops trading until 7:00 PM CST.. - CBOT stops at 2:00 PM CST, but begins trading again at 5:00 PM CST? That's bizarre. Is this the source of the gaps I've seen in grain prices the past few months...? I've often seen prices move a significant amount when they begin trading again at 5:00 PM CST, but didn't realize why. What are the spreads like in grain futures? Comparable to CBOT?
ICE has a longer trading day: 22 hours vs 21 hours. Yes there have been more gaps on the 5pm CST open of late. ICE has no liquidity because everyone is still trading on the CME/CBOT. If the ICE were wise they would introduce aggressive DMMs and introduce fee waivers to attract volume.
No, that's not correct... despite what ICE's own website shows as trading hours, I don't show any evidence of trades after 2:00 PM CST on the ICE beans futures.
That is correct. Market is open on ICE..just is NOT trading due to liquidity. Right now there is an offer of 2 contract s at 745.5 - NO BIDS. CBOT ZSH3 closed at 729.5
I think CME will reinstate the 1:15pm close, I am quite sure every pit trader has voted to cut these additional 45 minutes... but I don't know if they will recreate the pause before the main session. There is some volume during those hours with europeans and early US traders. They may lose their volume to ICE.