CME Group officials have indicated they’re considering switching to a cash settlement process for its live cattle futures. The CME is continuing to receive complaints about the extreme volatility in live cattle futures and are looking to bring some control back to the market. R CALF CEO Bill Bullard likes the idea of going to a cash settlement because his group has long believed these contracts should be settled with delivery.

He says for true transparency in the market, the volatility needs to be removed and there needs to be less speculative trade.

Bullard says the cattle futures market was never meant to function as a price discovery tool.

Besides looking at switching to a cash settlement for live cattle futures, the CME is also looking at possible modifications to the physical delivery process.