Stampeding Cattle Volatility Spurs Cut in CME Futures Hours
- Working group set to enhance `market quality,' exchange says
- High-frequency trading caused price swings, beef producers say
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CME Group Inc. is reducing trading hours for livestock futures, the latest measure taken by the Chicago-based exchange in response to beef producers who say there is too much volatility and undue influence from high-frequency traders.
A working group will be formed with the National Cattlemen’s Beef Association to examine more changes in trading, including setting up so-called circuit breakers to pause the market, CME Group, the owner of the world’s largest futures market, said Wednesday in a statement. The change in hours was “based on customer requests,” the company said.