Following a request from the Senate Judiciary Committee, a watchdog U.S. agency will investigate the fall of 2015 cattle prices.
The U.S. Government Accountability Office (GAO) will take on the request and focus on the effects of high frequency trading. It’s suspected they contributed to the sharp decline.
Futures and cash markets for cattle came under scrutiny over pricing last year after they dropped from record levels reached in 2014.
The agency has no time frame yet for completing the review, according to Drovers CattleNetwork.
CME Group Inc., which operates U.S. cattle futures markets, has made changes in an attempt to reduce price volatility.