CME, the world's largest and most diverse financial exchange, announced today that electronic spread trading of lean hog and live cattle futures will be available on CME Globex(R) beginning March 12.
"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 http://www.cme.com/elivestock .
CME ( http://www.cme.com ) is the world's largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on the CME Globex(R) electronic trading platform and on its trading floors. CME offers futures and options on futures in these product areas: interest rates, stock indexes, foreign exchange, agricultural commodities, energy, and alternative investment products such as weather, real estate and economic derivatives. CME is a wholly-owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE, Nasdaq: CME), which is part of the Russell 1000(R) Index and the S&P 500(R) Index.
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