We spoke with CME’s Managing Director of Agricultural Products and Alternative Investments, Tim Andriesen, today at the National Farm Broadcasting Convention in Kansas City. Andriesen says CME is excited about their recent acquisition of the Kansas City Board of Trade and is looking forward to what this means for trade.
CME Group will pay 126 million dollars to acquire the Kansas City Board of Trade under the transaction. The Kansas City Board will then make a special distribution of excess cash to members concurrent with closing. CME Group has committed to maintain a committe made up of KCBT market participants to advise on hard red wheat contract terms and conditions for at least three years, and to maintain the historic KCBT trading floor in Kansas City for a period of at least six months.
Andriesen was also enthusiastic about some new variations of current options CME introduced in the last year.
He also shared about feedback CME is hearing after extending their trading hours.
Andriesen says that with all of the options available and extended trading, it is important for producers to make good decisions and talk with their brokers about their options.