Source: Chicago Mercantile Exchange
CME, the world's largest and most diverse financial exchange, today announced the launch of electronic trading of options on CME Live Cattle and Lean Hog futures beginning December 4. The new functionality will provide a direct trading opportunity for traders who specialize in trading price volatility and for hedgers who are interested in purchasing price protection.
The new electronic livestock options will include a market marker program with the ability for mass quoting of options prices. Trading will take place during the same hours as the livestock options traded in open outcry for side- by-side trading from 9:05 a.m. to 1:02 p.m. for Live Cattle options and 9:10 a.m. to 1:02 p.m. for Lean Hog options Chicago time.
Electronically traded options on livestock futures enable customers to receive immediate trade execution notification. The functionality provides automated bookkeeping with instantaneous clearing account balances, market transparency and request for quotes (RFQs).