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	7/11/2007 10:12:56 AM
	of 12617

New all-Chicago exchange faces challenges after CBOT battle By Doug Cameron in Chicago Published: July 10 2007 03:00 \| Last updated: July 10 2007 03:00 Chicago Mercantile Exchange yesterday declared victory aftera nine-month pursuit of theChicago Board of Trade as members and shareholders voted to combine and create the world's largest derivatives platform. The vote followed a four-month bid battle with the smaller Intercontinental Exchange, which elected not to sweeten its bid for a third time after a contest that pushed the indicative value of CBOT close to $12bn. CME ended its quest for an acquisition after boosting its offer for a third time on July 6. That quelled opposition from a core of CBOT members who had pushed for better terms while supporting the principle of anall-Chicago combination. CBOT shareholders yesterday took less than five minutes to vote in the CME deal. Preliminary results had shown that an earlier poll of CBOT members had also voted overwhelmingly in favour, said Charles Carey, CBOT chairman. "I never thought we'd get there," he said. The enlarged group will narrowly top the derivatives business of Deutsche Börse in volume after the German group's planned purchase of the US-based International Securities Exchange. But the renamed CME Group faces challenges as it seeks to integrate the two Chicago exchanges and handle fallout from the bid battle. It still needs to find a long-term solution to the spat over CBOT's potential ownership in the Chicago Board Options Exchange, the subject of litigation. Relations with Wall Street banks have also been strained by the opposition of some institutions to a Chicago deal, which they claimed could stifle competition. CME argued that banks were attempting to defend their pricing power in the over-the-counter derivatives market. CME had to boost merger terms first outlined last October by almost 25 per cent to win control of the 159-year-old Board of Trade and its valuable franchise in financial and commodity-based futures and options. The ICE proposal, which was rejected three times by the CBOT board, had led the indicative value of the CME proposal for most of the past four months before last week's final moves eliminated almost all the difference between the all-stock offers. CME Group will have a market value of close to $32bn, based on yesterday's closing prices. The deal has antitrust approval. Copyright The Financial Times Limited 2007

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next