Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Serving: United States

CME Group to offer 'trading at settlement' for ag futures

CME Group to offer 'trading at settlement' for ag futures
CME Group will begin 'trading at settlement' offering for ag futures on June 8 after closure of open-outcry

Update, 5/26: CME says the TAS will now be offered starting June 15 instead of the originally planned June 8, to ensure a smooth transition.

CME Group will begin 'trading at settlement' offering for ag futures on June 8 after closure of open-outcry, the company said in a brief Monday.

Related: CME Group plans closure for most futures trading pits

Trading at settlement is an order type that allows a market participant to buy or sell futures contracts during the trading day equal to the yet-to-be determined settlement price, or at a price up to four ticks above or below that price, CME explained.

CME Group will begin 'trading at settlement' offering for ag futures on June 8 after closure of open-outcry. (Scott Olson, Getty Images)

According to CME Group, TAS will reduce uncertainty related to pricing around settlement; allow grain elevators and processors to price forward contracts at or near the settlement value; and will be a transparent alternative to floor based MOC orders, which will no longer be available after July 2.

TAS will be available for outrights and spreads and on CME Globex for grain, oilseed and livestock futures. Quotes will be published in real time on the screen throughout the trading day, and TAS order entry is not allowed prior to the beginning of each group's pre-open state, CME Group said.

More details on trading at settlement are available on the CME Group website.

Source: CME Group

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish