New ICE grains in may

CPTrader · Jan 29, 2013

Quote from TraDaToR:

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.

Why are the pit traders in support of the 1:15pm close?

Why do we still have pits?

heech · Jan 29, 2013

Quote from TraDaToR:

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.

No way! That article made it sound like the CME wouldn't be going back. That would be a ridiculous change.

The fact that the ICE is taking over the NYSE should be all the proof the CME needs that the floor is dying, and sooner rather than later.

FroggerMan · Jan 29, 2013

This would be a very big mistake on the CME's part.

Here is a link to the survey:
www.cmegroup.com/agsurvey

Here is a link to tell the ICE not to change their hours:
https://www.theice.com/contact_form.jsp?section=markets&item=ifus

TraDaToR · Jan 30, 2013

Quote from CPTrader:

Why are the pit traders in support of the 1:15pm close?

Why do we still have pits?

Good question...LOL. Traffic jam later in the day? Knee problems from standing longer?

TraDaToR · Jan 30, 2013

http://online.wsj.com/article/SB10001424127887323375204578272402817754378.html?mod=dist_smartbrief

heech · Jan 30, 2013

Quote from TraDaToR:

http://online.wsj.com/article/SB10001424127887323375204578272402817754378.html?mod=dist_smartbrief

Unbelievable. I'm sending them an email right now.

I'm not a huge customer... but I traded roughly 4000 RTs in the grains this past month, and I'm growing. I'll take all of that to ICE if they cut their trading hours significantly, ESPECIALLY around report hours.

CPTrader · Jan 30, 2013

http://www.foxbusiness.com/2013/01/29/cme-group-says-it-will-reduce-grain-futures-trading-hours/

This excerpt from the article linked above is hilarious and annoying:

"The National Grain and Feed Association, which represents grain elevators and some farm groups, called CME's Tuesday announcement "a positive first step." The group has been critical of expanded hours and noted, among other concerns, that trading during the USDA report releases puts would-be traders in rural areas at a disadvantage because in some cases their Internet connections are not as fast."

Read more: http://www.foxbusiness.com/2013/01/...ce-grain-futures-trading-hours/#ixzz2JTAZ5zHV

heech · Jan 30, 2013

LOL.

In my email to the CME, I asked rhetorically why they'd let dinosaurs dictate policy. That comment reaffirms the point.

heech · Jan 30, 2013

Looking at IS intra-day, and the spread looks reasonably tight. I don't know how it trades during a big move (if it's being arb'ed right on the ask/offer to CBOT)... but frankly, this looks like a no-brainer.

If the CBOT gets this wrong, changing over to the ICE requires that I do nothing except change one character in my code... ZS -> IS. ZC -> IC. etc, etc.

CPTrader · Feb 7, 2013

I also just noticed that ICE margins for grains are about 50% of CME margins. See here:

https://www.theice.com/publicdocs/futures_us_reports/all/Futures_US_Margin_Requirements.pdf

With reduced margins, cash settled products (thus avoiding delivery issues), extended hours, CE grains are truly the preferred product...if only they had greater liquidity.