Winnipeg Commodity Exchange Successfully Transitions to Electronic Trading

The Winnipeg Commodity Exchange (WCE) completed its switch to electronic trading on Monday, December 20, without major issues, according to market participants. The new system, implemented in partnership with the Chicago Board of Trade's e-cbot system, allows for the electronic trading of canola, feed wheat, western barley, and flaxseed contracts. While some traders had concerns about the potential loss of liquidity in the electronic platform, volumes were relatively good on the first day, exceeding the average daily volume for December 2004.

Key Takeaways:

The WCE became the first agricultural commodities futures market in North America to transition to an all-electronic trading system.
The electronic system was implemented through the Chicago Board of Trade's e-cbot system.
The last day of open outcry trading was Friday, December 17.
A local trader reported only a few minor glitches in the computer system and was pleased with the overall performance.
Volumes were relatively good on the first day of electronic trading, exceeding the average daily volume for December 2004.
WCE President and CEO Mike Gagne attributed the smooth transition to the efforts of WCE staff, market participants, the CBOT, and KCBOFCC.
The electronic system allows for a more competitive and transparent trading environment.
A commission house broker welcomed the market depth provided by the electronic platform, but noted that some information about market participants would take time to become more visible.

Statistics:

11,680 futures and options contracts were traded on the first day of electronic trading.
This exceeded the average total daily volume for December 2004, which was 10,803 contracts.
The electronic trading system was implemented in partnership with the Chicago Board of Trade's e-cbot system.

Sources:

Resource News International
Winnipeg Commodity Exchange (WCE)
Chicago Board of Trade (CBOT)