.jpg)
The Minneapolis Grain Exchange (MGEX or Exchange) will begin trading Hard Red Spring Wheat (HRSW) options electronically during the day on April 14. The Exchange announced plans for side-by-side options trading following approval of the change by its Board of Directors yesterday.
Beginning April 14, HRSW options will trade electronically and via open outcry during the daytime trading hours of 9:30 a.m. to 1:30 p.m. central time. This follows the side-byside trading that has been active in the HRSW futures contract since August of 2006. The electronically traded and open outcry traded contracts are fully fungible between platforms. HRSW options currently trade electronically in the overnight market.
“We have seen significant volume growth in our market since futures started trading electronically,” said James D. Facente, MGEX Director of Market Operations, Clearing and IT. “Electronic trading removes barriers to entry for market participants. The addition of options to side-by-side trading will advance our options market and create additional opportunities for spring wheat market participants.”
The MGEX also recently announced enhancements in the MGEX Clearing House that enable clearing members to use remote access to clear trades, creating another opportunity for HRSW market participants by eliminating the need for clearing members to have a physical presence in Minneapolis.
“Our focus is to provide opportunities and functionality that will benefit market participants by ensuring market transparency and creating additional opportunities for price discovery and risk management – the founding tenants of the MGEX,” said Mark G. Bagan, President & CEO of the Exchange.
