CME to launch electronic spread trading for hog and cattle futures

“Electronic trading of livestock spreads helps to eliminate the risk of price slippage because the spread trade can be done immediately in a single execution,” said John Harangody, Director of CME Commodity Products. “This spread functionality will add to the liquidity, transparency and execution speed, all of which are becoming increasing valuable to CME customers as demand for electronic trading of commodities increases.”

Producers, hedgers, suppliers and others often have a need to buy one commodity but sell another commodity at the same time. CME Globex will list the spread differential between the two products.

CME lean hogs futures have traded as much as 3,512 contracts on CME Globex in a single trading session and cattle have reached 1,715 contracts. Volume in CME lean hogs was up 57 percent in 2006 and live cattle volume was up 41 percent. For more information please visit www.cme.com/elivestock.

ThePigSite News Desk

Sign up for our
regular news updates

More of the latest Pig Industry News

•   OIE Monitors Global Pandemic H1N1 2009 Situation
•   CPC Urges Action on Canada-Columbia FTA
•   Guidance Document on Pig Protection Endorsed
•   NFUS Urges Participation in Carbon Footprint Study
•   Defra's New Guidelines to Reduce Salmonella in Feed
•   Study to Bring Benefits to Meat Sector
•   New Merck Company Begins Operations
•   Influenza A/H1N1 Outbreak in Swine Confirmed
•   Ensuring the Most Exposed Animals the Best Welfare
•   Pork with Anabolic Steroid Found in HCM City