Grain traders can proceed on CME price-settlement lawsuit -judge
CHICAGO Nov 26 (Reuters) - A group of grain traders can proceed with a lawsuit to overturn new price-settlement rules at CME Group, a circuit court judge in Chicago ruled on Monday.
Cook County Circuit Court Judge Lee Preston denied a motion from CME, owner of the Chicago Board of Trade, to dismiss the lawsuit.
The traders, who work in the open-outcry pits of the Chicago Board of Trade's historic agricultural trading floor, sued CME in June to halt end-of-day settlement rules that factor in transactions executed electronically, where most of the volume takes place.
Prior to the change, CME had a century-old tradition of settling futures prices for crops like corn and soybeans based on transactions executed in the pits.
Floor traders claim the new rules were killing business in the pits.