CBOT To Offer "Side by Side" Trading of Ag Futures in August

Agricultural futures will begin trading electronically, “side by side” with the pit-traded session starting August 1st. On April 26th, the CBOT announced the introduction of a new day session to be conducted on the e-CBOT platform from 9:30 am to 1:15 pm CDT. The products offered will be fungible with those available in the open outcry market, meaning a contract on the electronic platform can be offset with a pit-traded contract and vice versa, because both sets of products have the same specifications, including settlement through physical delivery. The new session is designed to attract new market participants, such as proprietary traders and commercial hedgers who prefer electronic trading, as well as provide arbitrage opportunities between the floor and the screen, while improving international access to these markets. The e-CBOT’s current session is open overnight, from 6:30 pm to 6:00 am CDT, and accounts for less than 5% of the total volume in agricultural products. Options will not trade electronically and will remain available on the floor only.