The Final Frontier - Online Remote Trading 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 : The Final Frontier - Online Remote Trading

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: TFF	6/18/2007 7:32:05 PM
	of 12617

ICE deal on contracts to take business from Merc (Crain’s) — IntercontinentalExchange Inc. announced an exclusive contract to trade futures on a popular set of stock indexes in a move that may erode the value of the Chicago Mercantile Exchange’s bid for the Chicago Board of Trade — and enhance its own. The agreement to list futures on the Russell 1000, 2000 and 3000 indexes will force the Chicago Mercantile Exchange to stop trading in the contracts, which it has offered since at least 2003. Currently the Chicago exchange handles more than 200,000 Russell contracts a day. The contracts account for as much as 2.5% of the Merc’s earnings, says Richard Repetto, an analyst for Sandler O’Neill & Partners in New York. Merc stock “should be down” on the news that it will lose that income, he said, which in turn will affect the value of the Merc’s all-stock bid for the CBOT. The value of the Merc’s bid has trailed Intercontinental’s since the Atlanta exchange made its unsolicited takeover bid in March. CBOT shareholders are set to vote on the Merc’s proposal on July 9. The CBOT board has endorsed the Merc’s bid, valued at about $10 billion, over the Intercontinental’s, valued at about $11 billion, saying in Securities and Exchange Commission filings that a Merc-CBOT combination would create the best long-term growth prospects. “The Board of Trade board of directors has said they are only looking at long-term value in their merger,” Intercontinental CEO Jeffrey Sprecher said in an interview. “One would think this is a value-creating event.” A Merc spokesman didn’t have an immediate comment.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next