Extended Trading and Post-Close Sessions in CBOT Grains and Oilseeds Frequently Asked Questions

What changes are being made?

Starting trade date July 6, the trading sessions for both CBOT Grain and Oilseed futures and options on Globex will be extended until 1:20 p.m. Central (CT). Additionally, the post-close session for open-outcry options will run from 1:15 p.m. until 1:20 p.m.

 

Why extend the trading session past the settlement period?

Based on customer feedback, we have identified a number of reasons to extend the trading session past the settlement, including:

  • The post-close session will no longer be available on the trading floor for CBOT Grain and Oilseed futures after the close of the futures pits
  • Provides an opportunity for traders to adjust for errors, square up positions, or execute late orders
  • Enhances liquidity near the settlement time
  • Options traders may delta hedge after 1:15 p.m. CT
  • Aligns the expansion of the post-close session for CBOT Grain and Oilseed options on the floor with the extension of Globex trading for Grain and Oilseed futures and option until 1:20
  • Livestock and all other asset classes trade past the settlement

 

Will floor or Globex trading pause right after the settlement?

No, trading will not pause at 1:15 p.m. CT. These changes will be a continuation of the Regular Trading Hours (RTH) session on both the floor (for CBOT Grain and Oilseed options) and on Globex (for both CBOT Grain and Oilseed futures and options).

 

How is this different than the futures modified session on the floor?

With the closing of the grain futures pits, there will no longer be a “modified session” or “post-close session” in those futures products. Beginning July 6, the post-close session in CBOT Grain and Oilseed options will be expanded from the current 3 minutes to 5 minutes.

Additionally, we will offer an extended session on Globex for CBOT Grain and Oilseed futures and options, which will continue past the 1:15 p.m. CT settlement without pause until 1:20 p.m. CT.

 

Will the change effect the settlement time or methodology?

No. This change will have no impact on the settlement prices or process. Both futures and options will still be settled based on trading activity during the settlement window between 1:14:00 and1:15:00 p.m. CT. Trades occurring between 1:15 and 1:20 p.m. will not affect the settlement price.

 

When will the futures settlement prices be determined and announced?

Since the settlement will be derived entirely of electronic trades, the settlement price will be determined in a much shorter timeframe. We intend to announce the settlement price by 1:16 p.m. CT.

 

After 1:15 p.m. CT, is it allowable to trade outside of that day’s trading range?

Yes. New highs and new lows may be established after the settlement period.

 

What about order entry?

New orders may be entered and existing orders may be canceled. GTC (Good til Cancel) orders, including day orders, will continue to be in effect until 1:20 p.m. CT.

 

Can expiring options trade past 1:15 p.m. CT?

Yes. Expiring options will be eligible for trade during the post-close period on the trading floor and Globex.

Expiring CBOT Grain and Oilseed futures will continue to expire at noon CT.

 

Will the expiring option traded after 1:15 p.m. CT count towards the settlement price?

No.

 

For questions regarding this change, contact:
Joanna Litchfield
joanna.litchfield@cmegroup.com

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