NFU President Roger Johnson sent a letter to Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler on Thursday urging the chairman to establish a 30-day public comment period to discuss the extension of electronic commodity trading up to 22 hours per day.
“The decision of the Intercontinental Exchange (ICE) and CME Group to expand trading to 22 hours per day has alarmed numerous NFU members, many of whom are involved in the cash grains market,” said Johnson. “Many have concerns about the volatile price swings that occur when U.S. Department of Agriculture reports are released. Additionally, expanded trading creates uncertainty regarding the availability of accurate and updated bids from grain purchasers after the open outcry trading day has closed with an established settlement price but electronic markets remain open. These are very reasonable concerns that must be answered.”