CHICAGO, May 10, 2011 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced it had revised its recent proposal to increase daily
price limits for Corn futures and options. Pending CFTC approval,
daily limits on CBOT Corn futures and options would increase to
$0.40 per bushel from the current
$0.30 per bushel, replacing a late
April proposal to increase daily limits to $0.50 per bushel. These contracts are listed
with, and subject to, the rules and regulations of CBOT.
"In response to significant increases in prices and volatility
in the market, we recently proposed daily price limit increases in
Corn futures," said Tim Andriesen,
Managing Director, Agricultural Commodities and Alternative
Investments, CME Group. "It's important that markets trade allowing
for price transparency and risk transfer and that limit moves are
infrequent so as not to prevent price discovery. At the same time,
we recognize wider limits have an impact on many of our commercial
customers. After significant discussion with customers and
representative trade groups, we've reduced the proposed increase to
$0.40 per bushel, which is a level we
believe balances those two concerns."
The current price limit is $0.30
per bushel per day for Corn futures and option contracts,
expandable to $0.45 and then to
$0.70 when at least two contracts
close at limit bid or limit offer on the previous trading day.
Under the new proposal, price limits would be $0.40 per bushel per day with a max of one
increase to $0.60 per bushel.
In recent months, Corn futures prices and volatility have
increased significantly. In the first quarter of 2011 alone, 36
corn contract months settled at limit bid or limit offer, compared
to 36 corn contract months settling at limit bid or limit offer in
all of 2010.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity indexes,
foreign exchange, energy, agricultural commodities, metals, weather
and real estate. CME Group brings buyers and sellers
together through its CME Globex® electronic trading platform and
its trading facilities in New York
and Chicago. CME Group also operates CME Clearing, one of the
world's leading central counterparty clearing provider in the
world, which offers clearing and settlement services for
exchange-traded contracts, as well as for over-the-counter
derivatives transactions through CME ClearPort®. These
products and services ensure that businesses everywhere can
substantially mitigate counterparty credit risk in both listed and
over-the-counter derivatives markets.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
Globex and Chicago Mercantile Exchange are trademarks of Chicago
Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the
Board of Trade of the City of
Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile
Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. All other trademarks are the property of their
respective owners.
CME-G
SOURCE CME Group