This will just cater to the robots as far as the reports go. You or I will not be able to read the report fast enough to get the news and trade off of it, and the robot programs will take it to limit if it is a big suprise before you or I can make a move or put any trade on. I much prefer the old way.
New ICE grains in may
- Thread starter TraDaToR
- Start date
This will just cater to the robots as far as the reports go. You or I will not be able to read the report fast enough to get the news and trade off of it, and the robot programs will take it to limit if it is a big suprise before you or I can make a move or put any trade on. I much prefer the old way.
I still think I prefer the ICE grains products because they are cash settled. Most speculators have no desire to take delivery of the physical so trading physically-settled products and dealing with the need to roll, manage delivery dates, etc is an unneeded burden.
Heech, do you think you'll move over to the ICE due to their contracts being cash-settled. I do not yet trade grains because of the non-continuous trading and the absence of cash settled contracts. I am tempted to now start trading grains on the ICE since the ICE contracts address both of these issues, I just wonder if volume will move to the ICE or remain on the CME.
What do you guys think?
Physically settled doesn't bother me at all... I never hold to delivery anyways. You're still going to have to roll forward in the cash settled futures, if your intent is to hold the position into the new month.
The big discontinuity is a huge issue, a factor I detest with a passion. All of these products are affected by outside markets to at least *some* degree, and the fact you can't trade when there are big macro events going on is horrible. And the USDA report... you know, it's *optional* if you want to participate and compete in speed-reading of the report with the robot. If you don't want to compete, you can just wait for the market to settle down (probably takes 15-30 minutes) before you place your trades. You aren't any worse off than you would've been before the new change was implemented.
That said, I don't really see a reason to move over to the ICE contracts now that CME has been forced to expand their trading hours.
The only thing that worries me is, how I'm going to deal with the first few weeks of transition. I'm tempted to lighten up substantially, until I get a better feel for how the product trades in the new time zones.
The big discontinuity is a huge issue, a factor I detest with a passion. All of these products are affected by outside markets to at least *some* degree, and the fact you can't trade when there are big macro events going on is horrible. And the USDA report... you know, it's *optional* if you want to participate and compete in speed-reading of the report with the robot. If you don't want to compete, you can just wait for the market to settle down (probably takes 15-30 minutes) before you place your trades. You aren't any worse off than you would've been before the new change was implemented.
That said, I don't really see a reason to move over to the ICE contracts now that CME has been forced to expand their trading hours.
The only thing that worries me is, how I'm going to deal with the first few weeks of transition. I'm tempted to lighten up substantially, until I get a better feel for how the product trades in the new time zones.
No way volume moves to ICE if the CME goes through with expanding trading hours. You're just going to have some shit markets from guys autospreading the CME books.
WTI is a bad analogy since it exists to facilitate Brent/WT spread trades, not as a pure side-by-side alternative to NYMEX.
WTI is a bad analogy since it exists to facilitate Brent/WT spread trades, not as a pure side-by-side alternative to NYMEX.
1 week delay for extended hours. KCBOT and MGEX are joining.
http://af.reuters.com/article/commo...MS20120503?pageNumber=3&virtualBrandChannel=0
http://af.reuters.com/article/commo...MS20120503?pageNumber=3&virtualBrandChannel=0
I hope the CFTC won't listen to them
http://www.nasdaq.com/article/grain...o-delay-extended-trading-hours-20120510-02101
http://www.nasdaq.com/article/grain...o-delay-extended-trading-hours-20120510-02101
FAQ on expanded hours starting Sunday, May 20, 2012.
http://www.cmegroup.com/trading/agricultural/files/cbot_hour_extention_faq_5-4-12.pdf
http://www.cmegroup.com/trading/agricultural/files/cbot_hour_extention_faq_5-4-12.pdf
not ready yet. under review by the cftc
http://www.chicagotribune.com/busin...ff-turf-war-with-cme-20120514,0,4122353.story