The National Cattlemen’s Beef Association has sent a letter to the CME Group asking them to address the concern of market volatility as a result of high-frequency trading. This follows a stakeholder meeting in December outlining market concerns.  Senior Vice President of Government Affairs Colin Woodall says with the market volatility producers are unable to use the futures for risk management.  As a result they’re asking the exchange, in part, to put in a safety valve for these high frequency trades.

He says they also want the CME Group to provide an audit trail.  Plus, be more proactive regarding the practice of spoofing and to impose a volume limit on trades.

Woodall says while NCBA believes the CME Group has the responsibility of regulating and policing any misuse of futures contracts, they aren’t convinced there is market manipulation.

He says they’re encouraged that CME Group Executive Chairman and President Terry Duffy will be speaking with producers about their concerns at the Cattle Industry Convention next week.