CME to buy CBOT for $8bn

[Directional]

wowsers!

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1vleKviD7D8

 

[laptop1]

This will create a monopoly in the futures markets, does this mean we get higher fees? not sure if I like the sound of it. time will tell.

 

[Glenbuck]

Whilst you have to be wary of a behemoth like this being created, I'm not too concerned about traders being exploited. If CME Group tried to abuse their position, even by minimal increases in fees, it would be all to easy for a rival to jump in or a group of banks to club together and create an alternative platform. In any case why would they jeapordise those month on month volume increases when their focus remains on opening an ever broadening array of instruments?

Where do we go from here? I'd be getting a little worried if I were Eurenext.Liffe or Eurex. As unlikely as it may seem now the CME could make a very formidable attempt at their contracts. I can also see NYMEX being snapped up by the CME given their joint ventures, which would leave ICE and the LME looking a little isolated.

I will be glad to see the back of eCBOT though, once their contracts have all shifted to GLOBEX.

 

[Directional]

http://www.prnewswire.com/news/inde...STORY=/www/story/10-17-2006/0004453063&EDATE=

Here's the full release. eCBOT listed contracts will be moved onto Globex. CME located pits will close and be relocated to the CBOT floor