New single-click spread available between MGEX, CBOT

by World Grain Staff
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MINNEAPOLIS, MINNESOTA, U.S. — The Minneapolis Grain Exchange (MGEX) unveiled on May 10 a new functionality involving its Hard Red Spring Wheat (HRSW) futures contract. At the request of market participants, MGEX collaborated with the Chicago Board of Trade (CBOT) to introduce single-click trading functionality between the MGEX HRSW futures and CBOT Soft Red Winter Wheat (SRWW) futures contracts.

Beginning with the May 20 trading session, MGEX and CBOT market participants will enjoy the convenience of single-click spread trading of the MGEX and CBOT wheat contracts. Available on the CME Globex trading platform, the single-click functionality addresses the inherent risk of legging the spread.

“With fundamental supply and demand factors, including the protein level difference between HRSW and SRWW, this new tool offers MGEX market participants around the world a more secure and convenient way to spread trade between the two wheat classes,” said Mark G. Bagan, president and chief executive officer, MGEX.

“This collaboration between MGEX and our business partner, CME Group, brings to market an innovative trading option that has been missing in the marketplace. We look forward to continuing to satisfy marketplace desire for new, innovative risk management tools,” said Eric J. Delain, corporate counsel, MGEX.

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