NGFA STATEMENT ON CME GROUP'S PLANNED EXPANSION OF ELECTRONIC TRADING HOURS
- The following is a statement issued by the NGFA on CME Group's planned expansion of trading hours.
"The NGFA recognizes that the CME Group's planned expansion of electronic trading hours is a response to the competitive environment in the futures industry, and the interest of certain customers for expanded trading hours.
"However, the NGFA's member firms are concerned about several elements of the CME Group's announced plans.
"First, there is concern about added personnel costs to monitor markets essentially around the clock.
"Second, there is significant concern about the market being open during release of USDA crop reports.
"In particular, accessing those reports is not generally a quick and simple process.
"There may be competitive advantages for firms or individuals who are able to access and process report information earlier than others.
"NGFA members also have raised questions over details not contained in the CME Group's announcement, including whether the settlement time still will be at 1:15 p.m. Central time.
"We will be seeking more detailed information from CME on these and other matters, which will be essential given the relatively short time for the industry to adapt prior to the planned May 14 implementation."
