- What products are being launched and when?
- What are the product codes and CBOT rulebook chapters?
- What is the contract size for all Micro Agricultural contracts?
- Do Micro Agricultural contracts have a different tick size than standard sized contracts?
- Do we have Micro options as well?
- What are the differences between Micro, Mini and standard contracts?
- How are the daily settlement prices of the Micro futures contracts determined?
- How are the final settlement prices of the Micro futures contracts determined?
- What are the trading hours? What is the settlement time?
- When is the last trading day of the contract?
- Are there price limits or circuit breakers?
- How can these futures contracts be traded?
- What are the price limits?
- Are the Micro futures contracts available to trade as a block?
- Is crossing permitted?
- I have more questions. Who can I contact?
1. What products are being launched and when?
We are launching Micro futures on the CBOT exchange for Corn, Wheat, Soybeans, Soybean Meal and Soybean Oil.
The first trading day is February 24.* The listed months for Corn and Wheat will be March, May, July, September and December.
For Soybeans, the contract months will be January, March, May, July, August, September and November.
For Soybean Meal and Soybean Oil, the contract months will be January, March, May, July, August, September, October and December.
*Pending regulatory review
2. What are the product codes and CBOT rulebook chapters?
Contract Name |
Globex Code |
Rulebook Chapter |
---|---|---|
Micro Corn futures |
MZC |
10O |
Micro Soybean futures |
MZS |
11O |
Micro Wheat futures |
MZW |
14O |
Micro Soybean Oil futures |
MZL |
12O |
Micro Soybean Meal futures |
MZM |
13O |
3. What is the contract size for all Micro Agricultural contracts?
Micro Agricultural products will be 1/10 the size of all standard contracts. Micro Corn, Micro Soybeans and Micro Wheat are 500 bushels, while Micro Soybean Oil is 6,000 pounds and Micro Soybean Meal is 10 short tons.
4. Do Micro Agricultural contracts have a different tick size than standard sized contracts?
All Micro Agricultural contracts will have a tick size that is twice the size of the standard contract. They will settle on a daily and final basis to the standard size contract, which can be at a nontradable tick.
Contract Name |
Micro Tick Size |
Standard/Settlement Tick Size |
---|---|---|
Micro Corn futures |
$0.050/bu |
$0.025/bu |
Micro Soybean futures |
$0.050/bu |
$0.025/bu |
Micro Wheat futures |
$0.050/bu |
$0.025/bu |
Micro Soybean Oil futures |
$0.002/lb |
$0.0001/lb |
Micro Soybean Meal futures |
$0.20/short ton |
$0.10/short ton |
5. Do we have Micro options as well?
No, but traders can pair Micro futures with standard options or short-term options to leverage optionality.
6. What are the differences between Micro, Mini and standard contracts?
Micro futures have most of the same specs as mini and legacy contracts, with a major difference in size and settlement.
All three classes of futures share the same expiration months and trading times, with Minis having a contract size 1/5 of standard legacy contract and Micros having a contract size of 1/10 of standard futures.
Micro contracts are financially settled, which provide several benefits, including the ability to participate in the expiration of a contract without the consideration of any aspects of physical delivery. Cash settlement allows a greater number of entities to participate late into a contract’s life. That means traders have more flexibility in their strategies near contract expiration. Since Micros are financially settled, they are not fungible with physically delivered standard-sized contracts.
Micro contracts trade in a larger tick size.
7. How are the daily settlement prices of the Micro futures contracts determined?
Micros will settle daily using the same price as their respective standard-size contract, regardless of whether the standard contract settled within the smaller tick increment. This means that the settlement could occur at a non-tradable price.
8. How are the final settlement prices of the Micro futures contracts determined?
The final settlement price of the Micro futures will be the daily settlement value of the standard-sized contract on the last trade date of the Micro contract.
Micros will settle using the same price as their respective standard-size contract, regardless of whether the standard contract settled within the smaller tick increment. This means that the settlement could occur at a non-tradable price.
9. What are the trading hours? What is the settlement time?
Trading hours for these contracts will match all other standard Agricultural contracts.
On CME Globex, trades may be entered on: Sunday – Friday: 7:00 p.m. – 7:45 a.m. CT and Monday – Friday: 8:30 a.m. – 1:20 p.m. CT
On CME ClearPort, trades may be entered on: Sunday 5:00 p.m. to Friday 5:45 p.m. CT with no reporting available Monday to Thursday from 5:45 p.m. CT to 6:00 p.m. CT.
10. When is the last trading day of the contract?
Trading terminates on option expiration day of the underlying standard size contract. The language states: Trading shall cease on the Friday which precedes, by at least 2 business days, the last business day of the month prior to the Corn futures contract month. If such Friday is not a business day, then the last day of trading in such contract shall be the business day prior to such Friday.
11. Are there price limits or circuit breakers?
The daily price limits for Micro Agricultural contracts will mirror the daily price limits for the standard-sized contracts. Access more information on daily price limits.
12. How can these futures contracts be traded?
The contracts are available for trading on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.
13. What are the price limits?
All Micro price limits will mirror standard-sized price limits.
14. Are the Micro futures contracts available to trade as a block?
Yes, block minimum thresholds and reportable times match the respective standard-sized contract. Access more information for CBOT block trade minimum thresholds.
15. Is crossing permitted?
Yes. As with all CBOT Grain futures, committed cross (C-Cross) and Globex cross (G-Cross) are permitted futures crossing protocols for participants who engage in pre-execution communications pursuant to Rule 539. Pre-execution communications allow for size, price and direction to be discussed prior to the entry of orders into CME Globex.
16. I have more questions. Who can I contact?
You can see our information page. For more questions, contact us at agriculture@cmegroup.com.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.