CME announced Wednesday that starting March 12, electronic spread trading of lean hog and live cattle futures will be available on CME Globex, which will list the spread differential between the two products to enable traders to buy one commodity and sell another at the same time.
"Electronic trading of livestock spreads helps to eliminate the risk of price slippage because the spread trade can be done immediately in a single execution," says John Harangody, Director of CME Commodity Products. "This spread functionality will add to the liquidity, transparency and execution speed, all of which are becoming increasing valuable to CME customers as demand for electronic trading of commodities increases."
Volume in CME lean hogs was up 57% in 2006 and 41% for live cattle.
For more information, visit http://www.cme.com/elivestock.