CME Group today issued a letter to customers today saying that it would reduce grain and oilseed trading hours, pending regulatory approval.
The statement said the exchange remained "committed to the integrity of our deep and liquid grain markets and listen intently to feedback from all of our customers. We regret that recent comments in press reports this week were not representative of that commitment." CME Group continued that since extending trading hours in May 2012, it has received "significant customer feedback from a broad cross-section of market participants, including through a formal survey we implemented last week."
CME continued that while the survey is still underway, "we have enough of your responses to be able to decide to reduce trading hours for our grain and oilseed markets, pending CFTC approval." As there are differences of opinion as to what the reduced hours should be, CME Group is still vetting alternatives with its customer base.
Further, CME Group said it was open to considering a market pause to allow participants to digest USDA report 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."
To view the full customer letter, click here.