Intercontinental Exchange, the parent company of the New York Stock Exchange, plans to begin offering cattle and hog futures contracts before the end of the year. This would create new competition for CME Group. According to Bloomberg, Intercontinental Exchange is targeting a December 7 launch, pending regulatory approval. The exchange plans to offer physically settled cattle futures along with three cash-settled contracts tied to cattle and hog prices.
The move comes as CME continues updating its trading infrastructure. Bloomberg reports that some traders and firms are concerned that CME’s planned shift to cloud-based technology could increase costs and affect trading speeds. CME has said the transition will improve efficiency and analytical capabilities. Intercontinental Exchange’s senior vice president of futures markets says they’ve received significant customer demand from those seeking credible alternatives to what has historically been a singular choice for cattle.
-NAFB