Thursday, February 11, 2016

Cattlemen not impressed by reforms

The National Cattlemen’s Beef Association is not impressed by changes the Chicago Mercantile Exchange Group has proposed to address concerns about wild price fluctuations.

The CME Group has proposed shorter trading hours.

But the cattlemen say that does not address their concerns.

They listed five of them in an open letter to the CME Group and say shorter trading hours is not on the list, nor were they consulted before the CME Group made its announcement this week.

The five issues they raised are:

1.   Implementing messaging standards similar to other commodities
2.   Introducing latency (brief one second delays) in trade
3.   “Spoofing” by traders to manipulate markets
4.   The release of audit trail data for analysis
5.   Better reporting of trade violators and market misuse.