Traders Sue CME Group Over New Settlement Rules

Jessica Dye of Reuters reported on Friday that CME Group Inc (CME.O) was sued by brokers and traders in a last-minute effort to halt new procedures to settle end-of-day prices for agricultural futures in its Chicago Board of Trade, which plaintiffs say could put them out of business.

The lawsuit was filed in Cook County court by a group of 24 traders and brokers, seeking to block any new rules that would diminish or eliminate the role of pit traders in determining settlement prices.

In May, CME and subsidiary CBOT said they would change the current price-settlement system to a blended model, using an algorithm that accounts both for floor-trading activity and electronic-trading information, given the increase in volume of electronic futures trading.

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