The CME Group, formerly known as the Chicago Mercantile Exchange, made a big announcement last week. It shared that the Dairy Spot Call, which offers daily price discovery in physical dairy markets, will transition from an open-outcry, in-person auction to an electronic, transaction-based auction.

The Dairy Spot Call is a cash auction where cheese is traded. Even though only a fraction of all cheese transactions are traded on the CME, it serves as the primary source for determining prices for cheese, fluid milk, and other dairy products.

This first electronic auction will take place on December 5, 2016, with nonfat dry milk. Although no specific date has been set yet, butter and cheese will transition to the same auction platform in early 2017.

The Dairy Spot Call markets will be available on the CME Direct Auction Platform, and registration will begin October 5. Participants must be registered by November 21 in order to be onboarded by December 5. Mock testing sessions will take place every Tuesday, Wednesday, and Thursday at 2 p.m. (Central time) from October 18 to December 1.

For more information, visit the CME Group website.