The CME Group promised, upon completion of its purchase of the Kansas City Board of Trade (KCBT) in December, to keep the exchange's trading floor open for at least six months. That promise will go no further, as CME has announced its intention to end open outcry trading there on June 28.
Open outcry bidding on wheat will move from KCBT, which handles wheat futures and options, to CME's trading floor in Chicago starting July 1.
KCBT will not shutter its doors immediately. An electronic trading center will remain open on its floor space through the end of September, to serve local traders.
"By moving Kansas City wheat to the Chicago floor later this year, we will make it as efficient as possible for our customers to trade both products and the spread between the two," says CME COO Bryan Durkin.
KCBT clearing services will be integrated into CME Clearing on April 15.
The wheat exchange, purchased by CME last year for $126 million, had existed since 1856.
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