KCBT wheat options post settlement session added

by World Grain Staff
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KANSAS CITY, MISSOURI, U.S. — The Kansas City Board of Trade's (KCBT) board of directors on Sept. 28 approved the addition of a post settlement session for the KCBT's hard red winter wheat options contract and voted to amend the open outcry trading closing time to 1:15 p.m. CT.

A daily post settlement session would begin as soon as practicable following the posting of the settlement prices for all contract months, but no later than 15 minutes following the close of regular trading hours unless a later start time is approved by the Pit Committee. The post settlement would encompass a two-minute trading period during which all trades which may occur during regular trading hours may occur, under the following conditions:

  • Trades may be made at any price within the established daily price limit for the contract.
  • New customer orders may be entered into the session for execution.
  • Members may trade in the pit as a principal and/or agent during the session.
  • Orders entered for execution during normal trading hours remain eligible for execution during the session unless cancelled.
  • Spread trades must be executed using prices within the daily price limit.
  • The prices at which trades occur during the post settlement session may establish a new high or low in an outright contract month or quoted spread or combination transaction.

Except as otherwise stated in the KCBT rule book, the rules applicable to trading during regular trading hours shall be applicable to trading during the post settlement session.

The new HRW wheat options open outcry closing time will be consistent with the closing time for KCBT's flagship HRW wheat futures contract, KCBT HRW wheat options electronic trading, and CBOT's wheat futures and options contracts.

HRW wheat options will trade by open outcry and electronically from 9:30 a.m. to 1:15 p.m. CT Monday through Friday and will continue to trade electronically from 6:00 p.m. to 7:15 a.m. CT Sunday through Friday.

Pending CFTC approval, the changes will be effective on Oct. 4.

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