Winnipeg Commodity Exchange Demise Implications

**Hopperbin** · Jan 16, 2008, 13:14

I believe they are hoping for an open market on barley. Not sure what to think, I am just watching. Can they improve the WCE? They appear to be trading longer hours. But not much happenning in overnight trading. I would be much more concerned if it was a Chinese company.

**parsley** · Jan 16, 2008, 13:36

Is the new entity a price-discovery mechanism or is it a hedge-fund?

Parsley

**IAMTHEMOLE** · Jan 16, 2008, 14:39

Delivery points are still Prairie based. Saskatoon is Par on all 3 commodities I believe.

**chaffmeister** · Jan 16, 2008, 14:40

the WCE has not "demised". It simply has new owners and the same management. It's sole purpose will be to promote volume.

Increased volume = increased profit.
Increased volume = improved liquidity.
Improved liquidity = lower risk.
Lower risk = greater returns (for farmers and end users).

ICE brings the WCE into the 21st Century: lower cost clearing (economies of scale); state-of-the-art technology providing greater access.

Rather than seeing this as a bad thing, I anxiously await what ICE will do to enhance current instruments and risk tools. (ICE also provides a platform for over-the-counter (OTC) instruments.)

Western Canadian farmers have lost nothing through the sale of WCE.

**TOM4CWB** · Jan 16, 2008, 15:09

Chaffmeister,

Is there any farmer Directors from western Canada over seeing operations?

**chaffmeister** · Jan 16, 2008, 15:21

TOM4CWB:

No.

Winnipeg Commodity Exchange Demise Implications