CME Demutualization-- What's the play? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : CME Demutualization-- What's the play?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LPS5 who wrote (2)	2/1/2000 6:49:00 PM
From: Tony	Read Replies (1) of 4

Hmm... The thing is, the CME is already loosing position to the other exchanges that have gone electronic already (now it's the 4th largest instead of the second or third). And without the demutalization, competition has already started (the merc is now doing E-Mini JY and EC contracts which are identical to the MidAm contracts, the E-mini's have not really picked up there so far as I can see. Further, there's a company down in TX which has an electronic contract for live cattle (index settled though) that is supposedly extremely near CFTC approval. It's interesting that you switch from liquidity to volatility, in your analysis-- the Eurodollars are among the most liquid cars in the world, but I wouldn't consider them the most volatile. My personal look at this is that unless there's something I'm missing, the Merc could do anything it wants to so far as new products or changing methods-- and the CFTC seems to be turning a blind eye to competition between exchanges. Where I'm stuck is that this move seems to be intended to preserve seat prices... but I'm not willing to buy a mature company with 2% growth and an EPS of .30 at more than $6-7/share. Trading privledges are a whole other ball of wax <g>. -T

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next