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CBOT Death Blow?
Posted: Wed Oct 03, 2007 9:05 pm
MF Global, with no warning.... Announces as of tomorrow, (not next week.... tomorrow) they will no longer route orders to the Chicago Board of Trade Mansfield agricultural trading floor. What does MF stand for exactly...
Posted: Thu Oct 04, 2007 2:09 am
I didn't receive any email from them saying that...
Posted: Thu Oct 04, 2007 6:08 am
If you use the Man Express application, it popped up on your screen when you logged on. Something about issues with order routing ,with the devices they use in the grain pits.
Posted: Thu Oct 04, 2007 9:06 am
This message is on the logon screen on Mtrade... Tuesday they had a delayed open due to communications into the pits. (so why not just kill the beast I suppose they 'figure') I had hoped the Ags could have somehow avoided this fate... I dont know if they will write a hand ticket and run it into the pit if we call the desk, and i presume other brokers still allow direct to pit electronically... But, this certainly wont be healthy for the grain pits.
Important: Directing ALL CBOT Grain futures orders to route electronically
In observing the total volume of side-by-side trading (electronic execution is now the vast majority of the grain futures volume) and the current issues that the CBOT trading floor is having with their order routing devices, starting Thursday October 4th MTrade will be directing (routing) ALL Grain futures (C, S, SM, BO, W, O, RR) and calendar spreads to the electronic E-cbot platform.
After the Grain close on Wednesday October 3rd (today), Mtrade will direct ALL Corn (ZC), Soybean (ZS), Soybean Oil (ZL), Soybean Meal (ZM), Wheat (ZW), Oats (ZO) and Rough Rice (ZR) to the E-cbot and no longer provide pit-traded symbols for the aforementioned futures contracts. Grain options, option strategies and mini grains will continue to route to the CBOT trading floor.
To facilitate the move of the futures and calendar spreads to the screen all GTC orders in the futures and calendar spreads that are currently working via Mtrade on the trading floor will be cancelled effective after todayâ€™s (10/3) close. Those orders will have to be re-entered using the appropriate electronic symbol. Grain options, option strategies and mini-grain GTCs will continue to work on the trading floor.
The following should be noted:
1) The contracts on the E-cbot are fully fungible (will offset) with the open-outcry.
2) The electronic trading hours for these seven (7) products are 6:30pm to 1:15pm (CDT).
3) MKT, LMT, STP, GTCs and calendar spreads are all acceptable order types.
4) MKT orders can only be placed when the markets are actually trading. Any MKT order sent during non-trading hours and/or the pre-opening will be rejected by the exchange.
5) No MOCs.
6) GTCs in these markets can be placed electronically. As your order flow transitions from the floor to the screen it is important to verify ALL orders to assure accuracy.
7) The protocol for electronic calendar (grain) spreads is: Leg 1 must be FRONT month / premium to the FRONT month. Because Leg 1 is the FRONT month there are times when the premium must be entered as a negative (-160 = negative 16 cents).
As always, please feel free to call the Global Execution Desk at 312-663-7800 with any questions.
This platform can now be used to place orders on almost all exchanges, including Access (NY Metals/Energies), Eurex, LIFFE, SIMEX, Sydney, Hong Kong and Tokyo!
Posted: Fri Oct 05, 2007 5:29 am
As I see it, pit trading is good for those who execute large orders and want to accumulate or dump a lot at once, for small orders electronic is just fine, but I dont want pits to go away anyways
Posted: Wed Oct 24, 2007 3:38 pm
Man's done this with the GBX energies as well, and now the grains. Once ICE gets a stop engine functioning, I would bet you'd see NYBOT heading in this direction as well.