Say goodbye to Winnipeg canola futures and hello to New York canola futures.
If the Intercontinental Exchange gets its way, Winnipeg’s canola futures contract will soon be operated out of the ICE’s New York-based core.
“As part of our continuing effort to constantly evolve our business to more efficiently meet our customer needs, we are transitioning the trading and clearing of our canola contracts from ICE Futures Canada and ICE Clear Canada to ICE Futures U.S. and ICE Clear U.S., pending regulatory approvals,” the Winnipeg exchange said in a participant notice yesterday.
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Running canola futures out of New York will provide “deeper liquidity, reduced administrative costs and a more diversified risk management pool.”
The company says it is not abandoning Winnipeg altogether. The “local presence” it intends to continue is not described in the notice.
ICE hopes to move the contract on July 29, if it gets the approvals it needs.
There isn’t much to the Winnipeg ICE operation beyond canola futures and clearing services.
The Winnipeg Commodity Exchange was one of ICE’s first significant purchases and was the first North American commodity exchange to go all-electronic.
Contact ed.white@producer.com
