CBT POSTPONES NIGHT TRADING START TO APRIL 30
The Chicago Board of Trade's (CBT)
board of directors voted to postpone the start of what will be
the first U.S. evening futures trading session until April 30
from April 2 to give participants a chance to get ready, the
exchange announced.
    Several trading firms had asked for a delay in the start-up
of the evening session so that the firms can work out
operational difficulties created by the off-hours session.
    CBT chairman Karsten Mahlmann said in a statement the delay
will "afford all firms the time necessary to be 100 pct ready
for this innovative program, we are postponing the opening
date."
    The board of directors accepted yesterday's recommendation
by a committee of members overseeing the planned evening
session, which was originally scheduled to start April 2. The
session is designed to begin the global trading day from 1800
to 2100 local Chicago time Monday through Thursday.
    CBT members overwhelmingly approved the evening session in
a vote conducted a month ago.
    But before night trading can begin, the CBT still has to
obtain approval from the Commodity Futures Trading Commission.
    Pending regulatory approval, the CBT plans to offer evening
trading in the world's most active futures contract, Treasury
bonds, along with Treasury note futures and options on those
contracts.
    The evening session will make available to traders in the
Far East interest rate hedging vehicles when their day is just
beginning, and the CBT hopes to attract trading capital from
the Pacific Rim's burgeoning financial centers.
    When the idea for a night trading session was broached, it
met with resistance from many local traders who said the
session would add to the physical strain of their jobs.
    Many traders and member firms also questioned whether the
night session would have the liquidity necessary to survive,
and complained that the cost of manning trading desks for two
sessions per 24-hour cycle might not be worthwhile.
    Some credit market analysts, including Norman Quinn,
president of Golden Gate Futures, said the night session would
likely be dominated by institutions, because the larger local
traders would refuse to return at night.
    Nevertheless, Quinn and other traders said the night
session has a good chance of succeeding.
 Reuter
