Chicago Board of Trade set to shorten U.S. grain trading day

Thu Mar 28, 2013 10:08am EDT

CHICAGO, March 28 (Reuters) - The Chicago Board of Trade has
won regulatory clearance to shorten the trading cycle for U.S.
grain markets after a move to extend activity hurt liquidity.
    The Board of Trade, owned by CME Group Inc, said it
will cut futures and options trading for crops like wheat, corn
and soybeans to 17.5 hours per session from 21 hours starting on
April 8.
    The Commodity Futures Trading Commision said it did not
object to the plan following a 10-day review.
    Under the new schedule, electronic trading will run from
7:00 p.m. CT to 7:45 a.m. CT (1245 GMT) Sunday to Friday.
Trading will pause for 45 minutes before resuming on the screen
and in Chicago's historic open-outcry pits until 1:15 p.m CDT.
    The change comes less than a year after the Board of Trade
increased the cycle to 21 hours a session from 17 hours in
response to a challenge from arch-rival IntercontinentalExchange
Inc. ICE in May began electronic trading on a 22-hour
basis.
    Grain traders said the Board of Trade's increase spread out
volume and reduced liquidity, and the exchange last week
confirmed that "quantitative evidence" supported the complaints.
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