Yesterday CME Group announced that it completed its acquisition of the Kansas City Board of Trade. Below is a message on this from CME Group's Tim Andriesen that went to CME Group customers and we wanted to pass this along to our industry association contacts who may have an interest.
To Our Valued Customers:
A few weeks ago we told you about CME Group's plans to acquire the Kansas City Board of Trade (KCBT). We are pleased to announce that the acquisition has been completed, and we will be able to offer you greater capital efficiencies, new trading opportunities and additional products over the coming months.
Today, you can already trade both KCBT's flagship Hard Red Winter (HRW) wheat futures, the international benchmark for bread wheat prices, and the CBOT Soft Red Winter (SRW) wheat contract, the most liquid wheat futures contract and the benchmark for soft wheat, on CME Group's Globex electronic trading platform and through open outcry. Combined with CBOT's nascent Black Sea Wheat contract, this makes CME Group a comprehensive marketplace for the global wheat trader.
As an initial benefit, beginning Monday, December 10, 2012 you will be able to take advantage of implied functionality on CME Globex to trade the KCBT-CBOT Wheat futures spread. This will allow you to capitalize on the price differentials inherent in the two classes of wheat by executing this popular spread as a single trade, rather than by legging into each individual contract. This is just the beginning of the new products and enhancements we plan to provide.
We appreciate your business and look forward to continuing to work with you to provide solutions to your risk management and trading needs.
For more information about this announcement please view our press release.
Sincerely,
Tim Andriesen
Managing Director, Agricultural Products
CME Group
