Silver Prices Plunge as CME Opens 24/7 Trading

CME Group made significant changes to its silver futures market by opening the 100-Ounce contract to 24/7 trading on September 11. This move allows for continuous trading, creating a live weekend session.

The change applies only to the smaller contract, ticker SIC, not the benchmark 5,000-ounce contract. The 100-ounce contract is financially settled against the daily settlement price of CME's 5,000-ounce silver futures and does not deliver actual metal.

Silver prices declined by 2% on Monday to $63.72 per troy ounce after the change, with a corresponding decline in the iShares Silver Trust (SLV) of 2.8% to $56.84. The move is seen as a response to market volatility and risk transfer during geopolitical or policy news.

However, some experts argue that liquidity remains a concern, as wide spreads and shallow depth can occur even with a technically open market. CME has not yet published enough data to establish the reliability of the 100-ounce contract's price discovery at every hour.