The U.S. Commodity Futures Trading Commission should implement a 30-day comment period on a plan by CME Group (CME:US) Inc. to expand trading hours for grain contracts, said Bart Chilton, one of five CFTC commissioners.
“It makes a lot of sense to hear from market participants, farmers and the public about this one,” Chilton said today by telephone. “We would be better off having an expanded view before a final determination is made.”
CME Group, the owner of the largest U.S. grain market, plans to expand trading to 22 hours a day from 17 hours starting on May 21, after IntercontinentalExchange Inc. (ICE:US) starts offering grain and oilseed contracts on May 14. The National Grain and Feed Association and the North American Export Grain Association, the largest U.S. grain-trading groups, yesterday urged the CFTC to delay the trading expansion and urged the regulator to implement the 30-day comment period.
The exchanges provided “inadequate advance consideration” of their plan to expand trading, the groups said. The impact of the longer trading day on market participants justifies intervention by U.S. regulators in delaying the change, they said.
To contact the reporter on this story: Tony C. Dreibus in Chicago at Tdreibus@bloomberg.net, or Silla Brush in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Steve Stroth at email@example.com