If the Markets stop trading on the floor and start trading ESPD way this could be a monster in the making. Also with high volume of bonds trading lately could really add to ESPD bottom line. Below is a few quotes about the way the market may change. And if they pick ESPD platform this will rock.
06/02/00: Going Public Appears To Be In The Futures? Future
SUSIE GHARIB: The futures exchanges might soon go public way ahead of the New York Stock Exchange and the NASDAQ. This month, members of the Chicago Merc, the New York Mercantile and the Chicago Board of Trade will vote
on whether or not to make this historic decision. Mary Haffenberg of BridgeNews reports.
MARY HAFFENBERG, BRIDGENEWS: For decades, futures contracts on everything from cattle to Treasury bonds have been traded on the auction style floors of America?s futures exchanges. But technology, which has already started
the migration off trading floors on the floors and onto computer screens, is now changing the member organizations that make up the exchanges. One by one the not for profit clubs are opting to become for profit companies. The process is called demutualization, which industry watchers say is a requirement for exchanges to survive in the increasingly competitive futures environment.
JOHN DAMGARD, PRES., FUTURES INDUSTRY ASSOCIATION: They have to figure out a way in which to make their decisions more crisply and run their businesses as if they were businesses and not as clubs.
O?BRYON: The first exchange to take the plunge is the Chicago Mercantile Exchange, where members are scheduled to vote on Tuesday to become the CME, Inc.
JAMES MCNULTY, PRES. & CEO, CHICAGO MERCANTILE EXCHANGE: The
fastest way for us to find new ways to grow is to do it though a corporate structure where we can go out to outside investors when we need to, to fund our new growth.
O?BRYON: Once a company, CME, Inc. has eyes on listing not just futures contracts, but business to business ventures as well.
MCNULTY: The hardest part of the commerce is not making the trade. The hardest part about the commerce is the clearing and the settlement and the delivery. And what we are experts at is clearing, settlement and delivery, and
that?s what we bring to the B to B environment.
O?BRYON: At the New York Mercantile Exchange, where metal and energy futures are traded, members will vote June 20th on a plan similar to Chicago?s Merc. Over at the Chicago Board of Trade, the country?s oldest and largest
futures exchange and home to the grains and Treasury contracts, members are expected to vote by the end of June, but on a much more radical plan.
DAVID BRENNAN, CHAIRMAN, CHICAGO BOARD OF TRADE: We plan at the Chicago Board of Trade to split into two different companies, an open outcry trading company for profit and an electronic trading company for profit and allow
the two different venues to go off on their own and basically compete.
O?BRYON: Because the Board of Trade is already facing competition from new all electronic exchanges listing CBOT contracts, Brennan says it must adopt a
plan in which the CBOT is everything to all customers, even though some members are uneasy with the plan.
BRENNAN: The pace of change is increasing and our competitors are getting more aligned and more nimble because they?re businesses.
O?BRYON: Whether CBOT members vote to demutualize or not, the competition is expected to keep on coming and one way or another, it and the other exchanges will have to provide wider and cheaper access to their products. Mary
Haffenberg of BridgeNews for NIGHTLY BUSINESS REPORT, Chicago.
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