To batch or not to batch? The release of USDA crop reports

In 2012 USDA began releasing crop reports during trading hours. Prior reports were released during a trading halt, and in the electronic trading platform traders competed in a batch auction for 2 h. Compared to the current real-time release policy, the batch auction reduced speed advantage, lowered market volatility, and improved liquidity around report releases, at the cost of delaying price discovery. The results reported here support the argument that the development of a shorter batch auction could improve on the lengthy price discovery process while maintaining the batch auction's other advantages. These findings are relevant to not only developed countries with well-established exchanges and public information systems, but to developing countries who have recently launched or are planning to launch futures commodity markets.