Source: CBOT
The Chicago Board of Trade (CBOT® ) announced today it will host on its electronic trading platform the agricultural futures and options products of the Kansas City Board of Trade (KCBT) and the Minneapolis Grain Exchange (MGE), providing a single operating system for the largest agricultural commodity exchanges in the United States.
In addition, the agreement designates the CBOT as the two exchanges' sole direct distributor of market data through the CBOT Quote Vendor Network.
The CBOT also has signed a memorandum of understanding with the Winnipeg Commodity Exchange (WCE) stating that WCE contracts will be traded on the CBOT's electronic trading platform. The final agreement is expected to be signed in the near future.
CBOT President and CEO Bernard Dan said, "The CBOT has formed strategic relationships with the KCBT and MGE, two of the world's leading futures exchanges, to drive standardization in electronic trading of agricultural futures and options. The landmark agreements with these institutions provide greater efficiency, reduced costs and expanded access for our market users, while creating a shared network for a suite of products that compliment the CBOT's core agricultural complex. Further, the CBOT will be the direct distributor of data for the KCBT and MGE, an arrangement that is unprecedented in the futures industry."
Beginning in the fourth quarter of 2004, the CBOT will host futures and options products from the KCBT and MGE on its premier electronic trading platform, powered by LIFFE CONNECT®. The CBOT's electronic trading platform has helped to facilitate the exchange's extensive volume growth since the system was fully implemented in January 2004. Under the hosting agreements, the KCBT and MGE markets will remain independent and maintain separate open and close times. Electronic trading of the CBOT's agricultural products is available from 7:30 p.m. to 6:00 a.m. Central Time Sunday through Friday. The CBOT will provide real-time monitoring of market operations for both exchanges.
The agreements also consolidate data distribution for the exchanges involved, increasing operational efficiency for vendors and users. The CBOT will distribute market data for the exchanges in the industry's standard format through a single data feed on the CBOT's Quote Vendor Network. Last trade, best bid/ask, as well as data on market depth, such as bids and offers waiting to be filled, and other key information will be available via the CBOT's network.