The changes are a result of CME trying to adapt to trader and consumer demand, according to the CME press release announcing the change. 

"Over the past several months, we have been engaging with a broad cross section of customers and industry participants, including a formal survey in August, and based on that feedback, we have determined we should reduce electronic trading hours for our livestock products," said Tim Andriesen, CME Group managing director of agricultural commodities and alternative investments, in the press release. "It is important that we provide products that meet the changing needs of our customers and the market. We believe this change will result in deeper and more liquid markets to serve their risk management needs."

The new hours are pending review by the U.S. Commodity Futures Trading Commission, and would limit electronic trading for CME Lean Hogs, Live Cattle and Feeder Cattle futures and options to the following times:

  • Monday: 9:05 a.m. to 4:00 p.m. Central time
  • Tuesday to Thursday: 8:00 a.m. to 4:00 p.m. Central time
  • Friday: 8:00 a.m. to 1:55 p.m. Central time

The current electronic trading hours start Monday at 9:05 a.m. Central time and run to 1:55 p.m. Friday, with one-hour breaks at 4:00 p.m. Monday through Thursday, according to Reuters. 

The change in electronic trading hours will not affect open-outcry trading hours.

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The changes have been welcomed by traders. "There was very little volume overnight, so it'll create a much better trading atmosphere," Archer Financial Services commodities broker Dennis Smith told the Wall Street Journal. 

"The volume seems to die out after 9:00 p.m. CDT and does not pick back up until after 6 a.m. CDT. There is not any fundamental information overnight, and I do not believe that European and Asian traders trade much cattle," Oak Investment Group president and live cattle futures trader Joe Ocrant told Reuters.

Analysts and traders said the changes would calm market volatility by concentrating volumes of trades. 

This is the second year of cuts to electronic trading hours at the CME. CME cut its grain futures hours in 2013, after expanding them in 2012. 

Overnight trading in cattle futures began in 2007, according to Bloomberg.  end mark

—Summarized by Progressive Cattleman staff from cited sources