Milling & Baking News - November 4, 2008 - 9

Business

Open outcry era to end at
Minneapolis Grain Exchange
Continued from Page 1

our member owners," said Mark
Bagan, president and chief executive
officer of the MGEX.
During the transition period to electronic trading,
the MGEX said it will waive
all fees associated with open
outcry transactions for floor
traders initiating trades on
their own behalf from Nov.
1 to Dec. 19. In addition,
exchange fees for electronic
trading permit holders will
be waived Nov. 1 through
Jan. 31, 2009. In an effort
to facilitate the change and
build market participation,
the MGEX also said it will
implement a liquidity provider program and market
maker program.
The decision came after a
lengthy study by MGEX management requested by the exchange's board of directors.
"The board of directors is acting in
accordance with its fiduciary responsibility to MGEX members," said Scott
A. Cordes, chairman of the board.
"While we will regret to see the end
of open outcry trading in Minneapolis, the new fee programs provide an
opportunity for global growth in our
hard red spring wheat contract."
Trading of hard red spring wheat
futures began at the Minneapolis
Chamber of Commerce on Jan. 3, 1883,
two years after the Chamber began as

a regional market for cash wheat, corn
and oats. Its name was changed to the
Minneapolis Grain Exchange in 1947
after Chamber of Commerce became

associated with business and civic organizations. Options trading on hard
red spring wheat began Oct. 30, 1984.
The MGEX said it will continue to
host the cash market from a remodeled location in the Grain Exchange
building, and has built in space for a
new member lounge as well as desk
space for electronic trade execution.
In addition, electronic trading of
agricultural index futures and options
for corn, soybeans, hard red spring
wheat, hard red winter wheat and soft

Sunrise Bakery addition extends
Gatehouse's East coast reach
BERWYN, PA. - Gatehouse Ventures, L.P. has acquired Sunrise Bakery, Brooklyn, N.Y., and added the
company to the bakery division of
Gatehouse Holdings, L.L.C. Sunrise
Bakery produces more than 400 varieties of bread and rolls and private
label bread and frozen bread products
for stores, supermarkets, delis, restaurants, schools, hospitals, institutions
and hotels. The company runs bakery
depots in the New York metro area
and Stroudsburg, Pa.
"The combination of a greater depth
of product, increased manufacturing
capability and a significantly larger
geographic reach positions us as the
bakingbusiness.com / world-grain.com

vendor of choice for a very broad customer base," said Chris Jansen, managing director of Gatehouse Ventures, the
management arm of Gatehouse Holdings. "We can effectively provide over
400 baked products to independent
distributors, as well as the largest institutional food service providers, in a
five-state region along the East coast."
Gatehouse Holdings also owns Philadelphia-based D'Ambrosio Bakery,
which includes Amalfitano's Italian
Bakery, New Castle, Del., and The Total Bakery Source, a baked foods distribution company. Gatehouse Holdings
already has bakery depot locations in
Philadelphia and New Castle. MBN

red winter wheat will continue on the
CME Globex system in their current
form. Agricultural index trading at the
MGEX began Dec. 15, 2004.
"The exchange is establishing our
position in the derivatives industry
while ensuring preservation of our internationally respected cash market,"
Mr. Bagan said.
"Over the past 12 months
there has been a dramatic trend
away from open outcry and towards electronic trading witnessed by all U.S. exchanges,"
the MGEX said.
As of Sept. 30, year-to-date
electronic trading volume in
spring wheat futures and options at the MGEX totaled
513,841 contracts, up 81% from
the same period in 2007, compared with open outcry total
volume of 476,486 contracts,
down 45%.
Open outcry trading will continue in the grain pits of the Kansas City Board of Trade and the
Chicago Board of Trade (now
part of the CME Group), both of
which also trade electronically
on the CME Globex platform.
Jeffrey Borchardt, president of the
K.C.B.T., said there were no plans to end
open outcry in Kansas City, noting that
open outcry accounts for about one third
of total daily volume at the exchange.
"We want to provide a choice of access for our all our customers," he said.
The former Winnipeg Commodity
Exchange ended open outcry trading
in December 2004. It became part of the
U.S.-based IntercontinentalExchange
(ICE) electronic system in 2007. MBN

I.B.C. names Grey New York
agency-of-record
NEW YORK - Interstate Bakeries Corp.
has selected Grey New York as its new advertising agency-of-record. Grey replaces
Minneapolis-based Campbell Mithun,
which had been I.B.C.'s agency-of-record
for nearly a quarter century.
Grey New York will be responsible for
all integrated communications and provide strategic planning, creative execution,
media planning, digital and shopper marketing. A new brand advertising campaign
is in development.
Grey Group, which ranks among the largest global communications companies, is
part of WPP. In addition to I.B.C., the company's clients include Procter & Gamble,
Darden Restaurants and J.M. Smucker. MBN

Milling & Baking News

November 4, 2008 / 9

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - November 4, 2008

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