In a change of course for the exchange, CME Group Inc. (NASDAQ:CME) announced on Tuesday that it will cut the trading hours for its grain and oilseed markets, pending CFTC approval.
The news came in a CME letter to customers and included the language that “by varying opinions on what the reduced hours should be, we are continuing to vet alternatives with our customer base. We will be communicating more specifics on the revised hours in the coming weeks.”
In May 2012, CME extended trading hours for the products and received a number of comments from its customers regarding the change. Just last week, the exchange announced it would begin conducting outreach and seek feedback with its?customers, producer groups and other market participants on the expanded CBOT grain and oilseed trading hours.
CME offered an online survey to the group which runs through Thursday, Jan. 31.?
In addition, on Tuesday the exchange also addressed implementing a market pause to?halt trading during the release of the USDA’s monthly and quarterly crop reports.
The exchange wrote in the letter, “CME Group understands the frustration
of many of our customers, and we are open to considering a market pause allowing participants to?evaluate the data if all exchanges and trading venues would do the same. We would support a halt, as?long as it was unified for all venues, as that would best benefit all customers by ensuring the necessary?market liquidity needed for effective price discovery during this time.”
This comes after Chief Executive Phupinder Gill said earlier in the week to Reuters that the possibility of halting trading for USDA reports “doesn’t make sense,” and that a halt had been pushed “by a very small minority,” reported The Wall Street Journal.
The news was taken as mixed with some of the bigger players saying the expanding hours haven’t had a great effect while small players still struggle to compete.?