Trading at Settlement (TAS) for Agricultural Futures

A flexible and transparent way to manage settlement price uncertainty - Now Available

Trading at Settlement (TAS) is an order type that allows a market participant to buy or sell futures contracts during the trading day equal to the yet-to-be determined settlement price, or at a price up to four ticks above or below that price.

Why TAS?

  • Reduce uncertainty related to pricing around settlement 
  • Grain elevators and processors may use TAS orders to price forward contracts at or near the settlement value
  • TAS orders offer a transparent alternative to floor-based MOC orders, which will no longer be available after July 2

Key Features

  • The matching algorithm will match that of the underlying futures
  • Available on CME Globex
  • Quotes published in real time on screen throughout the trading day
  • TAS is available for outrights and spreads
  • TAS order entry is not allowed prior to the beginning of each group's pre-open state, just like other order types
  • TAS is traded in the same tick values as the underlying futures 

TAS Grain and Oilseed Example:

For Corn, Soybean, SRW Wheat, or HRW Wheat Futures, the minimum price fluctuation or tick size is ¼ cent per bushel. A trader seeking to lock-in the settlement price before it has been determined may enter any of the following TAS orders at any time during that trading day:

  • A buyer may bid TAS 0 or a seller may offer TAS 0 to trade at the settlement price.
  • A buyer may bid TAS +1, +2, +3 or +4 in an effort to incentivize the other side of the trade. Depending on the differential, these options would result in an assigned price equal to the settlement price plus $.0025, $.005, $.0075, or $.01 per bushel.
  • A seller may offer TAS -1, -2, -3 or -4 in an effort to incentivize the other side of the trade. Depending on the differential, these options would result in an assigned price equal to the settlement price minus $.0025, $.005, $.0075 or $.01 per bushel.
The order book will show TAS ticks in the same units as the underlying futures.

TAS Livestock Example:

A beef producer wants to sell one April live cattle futures contract at the settlement price.

  • There is no bid at “TAS flat”
  • He enters a TAS-1 offer in the order book in effort to incentivize the other side of the trade
  • Meanwhile, a beef packer wants to buy one April Live Cattle futures contract at or near the settlement price, so she lifts the offer and buys one contract at TAS-1, the settlement price minus one tick, or 2 ½ cents per hundredweight.

The trades are matched. Later that afternoon at 1:00, April Live Cattle settles at $160.875 per hundredweight. The resulting executed price to the buyer and seller is therefore $160.850 (settlement price minus $.025)

The order book will show TAS ticks in the same units as the underlying futures.

Which CBOT/CME Agricultural Futures contracts are eligible for TAS?

  Contracts (Globex Code) TAS Trading Hours Contract Type Contract Range TAS Range
Grains & Oilseeds Corn TAS (ZCT)
Soybean TAS (SBT)
Soybean Oil TAS (ZLT)
Soybean Meal TAS (ZMT)
Chicago SRW Wheat TAS (ZWT)
KC HRW Wheat TAS (KET)
Sunday - Friday,
7:00 p.m. - 7:45 a.m. CT

Monday - Friday,
8:30 a.m. - 1:15 p.m. CT
Outrights First three listed futures contracts, plus the new crop month when not already represented in the first three +/- 4 ticks
Spreads

First two consecutive calendar spreads Highly-liquid old crop-new crop spreads*

+/- 8 ticks
Livestock Live Cattle TAS (LET)
Feeder Cattle TAS (GFT)
Lean Hogs TAS (HET)
Monday - Friday,
8:30 a.m. - 1:00 p.m. CT
Outrights First two listed futures contracts (outrights)** +/- 4 ticks
Spreads First consecutive calendar spread +/- 8 ticks

*Please refer to the Cycle Guide
**TAS is not offered on the May Lean Hog contract