CHICAGO, Sept 8 The CME Group Inc, the
world's largest livestock futures exchange, will adjust rules
governing lean hog futures settlement procedures to include
negotiated formula purchases, the exchange said on Thursday.
The change is effective on Oct. 12 pending regulatory review
by the Chicago Futures Trading Commission.
The adjustment will allow CME's rules to be consistent with
the negotiated formula hog purchase method that was created when
the U.S. Congress reauthorized the Livestock Mandatory Reporting
program on Sept. 30, 2015.
Beginning on Oct. 12, the USDA's National Daily Direct Hog
Prior Day Report (LM_HG201) will include the negotiated formula
As a result, the CME will incorporate negotiated formula
purchases into the final settlement calculation methodology for
all listed months of the lean hog contract and starting with the
October 2016 contract.
For further information regarding the new rule changes:
(Reporting By Theopolis Waters; editing by Grant McCool)