(Resource News International) — The Winnipeg Commodity Exchange’s electronic
trading platform will officially transfer to the InterContinental
Exchange (ICE) from the CBOT beginning Dec. 9, coming with new extended trading hours.
“The last WCE trading day on the CBOT trading platform will
be on Friday, Dec. 7,” said WCE president Will Hill. “The WCE’s move to ICE will officially occur on Sunday, Dec. 9.”
Trade at the WCE will start at 8 p.m. CT
on Dec. 9 and trade straight through to 1:15 p.m. CT
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There will be a preopen, which will start at 7 p.m. CT, an
hour before the market officially opens, Hill said.
“Because ICE does not halt any of their other markets, it
was decided to keep the WCE open for the duration,” Hill said.
The WCE currently trades from 9:30 a.m. to 1:15 p.m. CT and
overnight from 6:30 p.m. to 6 a.m. CT.
The halt in the trade was more for the benefit of Chicago’s
open outcry session, Hill said.
The WCE moved to an electronic trading platform in 2004.
“I do not anticipate any problems with the extended hours,”
said Fimat Canada’s senior vice-president Stan Casar in Calgary.
Because Fimat was a global company, he said, it would
shift order placement to the appropriate office to accommodate
the new hours.
Casar also said the extended hours may lead to increased
trade given that it will now be open during Australian, European
and Asian trading hours.
Tony Tryhuk, manager of commodity trading
for RBC Dominion Securities, agreed most companies will
adapt to the new hours.
“If the limit of the trading platform calls for those kind
of hours, then that’s what we will work with,” he said.
Tryhuk admitted there are market participants who
would prefer the status quo — meaning being able to digest the
news from overnight, as well as adjust to any fresh weather
information, world events or government data that may have been
released prior to the market’s opening.
“It will take some adjustments to not have that time period
to work with and while it will be different it is also very doable,” Tryhuk said.
Some brokers were concerned that expanded hours could result
in some confusion as well as spread out volumes over a longer
time. This was seen creating more volatility and possibly more
illiquidity.
WCE Holdings, the parent company of the Winnipeg
Commodity Exchange, WCE Clearing Corp. and Canadian Climate
Exchange, was purchased by ICE earlier this year.
WCE offers futures and options contracts on canola, domestic
feed wheat, and western barley.
WCE shares had been traded among individuals, but were not
traded on a stock exchange.
