Corn -- What of it: Different Trading Hours for ZC & YC ?

CharlesS

CharlesS

As shown further below, there are different trading times for CME Corn Futures

ZC Regular contract/5K bushels
YC MINY contract/1K bushels​


Does anyone have any view on The WHYs & The IMPLICATIONS ?

Is the ZC closing price understood as the "real" price for CME corn futures,
ie is the MINY YC longer session is generally ignored by most Corn analysts, or not ?



ZC:

Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday, 8:30 a.m. – 1:20 p.m. CT

TAS: Sunday - Friday 7:00 p.m. - 7:45 a.m. and
Monday - Friday 8:30 a.m. - 1:15 p.m. CT


YC:

Sunday - Friday, 7:00 p.m. - 7:45 a.m. CT and
Monday - Friday, 8:30 a.m. - 1:45 p.m. CT
​


[ I did email this question to agriculture@cmegroup.com a few weeks ago, but no response received ]
 
maxinger said:
most likely the machine will respond to the caller.
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@CharlesS I managed to get a hold of a Grain rep over there. Name was Candice or something. I asked her the question you posed, regarding the different end-of-trade times between ZC and YC and she said she had no idea. She said she would research it and get back to me as soon as she had an answer.
 
Overnight said:
@CharlesS I managed to get a hold of a Grain rep over there. Name was Candice or something. I asked her the question you posed, regarding the different end-of-trade times between ZC and YC and she said she had no idea. She said she would research it and get back to me as soon as she had an answer.
More...

Great, thanks Overnight
 
CharlesS said:
As shown further below, there are different trading times for CME Corn Futures

ZC Regular contract/5K bushels
YC MINY contract/1K bushels​


Does anyone have any view on The WHYs & The IMPLICATIONS ?

Is the ZC closing price understood as the "real" price for CME corn futures,
ie is the MINY YC longer session is generally ignored by most Corn analysts, or not ?



ZC:

Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday, 8:30 a.m. – 1:20 p.m. CT

TAS: Sunday - Friday 7:00 p.m. - 7:45 a.m. and
Monday - Friday 8:30 a.m. - 1:15 p.m. CT


YC:

Sunday - Friday, 7:00 p.m. - 7:45 a.m. CT and
Monday - Friday, 8:30 a.m. - 1:45 p.m. CT
​


[ I did email this question to agriculture@cmegroup.com a few weeks ago, but no response received ]
More...
Hi Charles. In 1996 - 2001 or so I clerked and executed hedges for a group of locals who made markets on options. At the time the minis traded in the Mid-American exchange with longer hours. Essentially if a floor local in the options pit went long or short a position right at the close and couldn't hedge in the regular futures pit we had around a half hour or so and do the math and enter a corresponding order at the Mid-Am. This was all before electric trading the and launch of the mega algorithms that replaced everyone in the pit but it was some rationale for the longer hours in the mini as the options stopped and the overnight risk needed to be hedged.
 
caroy said:
... In 1996 - 2001 or so I clerked and executed hedges for a group of locals who made markets on options. At the time the minis traded in the Mid-American exchange with longer hours....
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caroy, interesting -- this has been going on for a long time and has enabled late hedges, presumably still doing so. Funny, I sometimes do the same for equities, wrt the 15h00 CST options close vs. 15h00-15h15 globex & then thru after-hours.

Is it your impression that the origin of the difference is simply that the CME & Mid-America did not try to, or were not able to, reconcile their closing times wrt CORN ?

Do you recall if the MINY close was ignored by those trading on DAY and longer term charts ?
Even ignored by those trading MINYs only ?

w/ the MINY trading now for a long time at CME (?), I wonder why CME has maintained the difference.
 
I would think the benefit to the option market makers and locals being able to hedge their positions and that of other spreaders and futures locals kept it as a reality. I would imagine to some extent the later close in the minis still fills this role.
 
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