November 18, 2009
CME group to change CBOT futures settlement procedures
The Chicago Board of Trade will change the settlement procedures for agriculture futures, starting Dec. 1, the CME Group said in an advisory note released Tuesday (November 17).
The settlement procedure for wheat and rough rice futures will rely primarily on CME Globex electronic trade, while the settlement methodology for corn, and the soy complex futures will be modified to where lead months will settle based on estimated volume-weighted average price established in the pit during the closing range, the note said.
The first two contract months other than the lead contract months in corn and the soy complex will settle to spread relationships established in the pit, while remaining contract months will settle upon spread relationships established on electronic system at 1:15 p.m. CST.
