The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Chicago exchanges mull a merger

The CME and CBOT look to be the most likely candidates for a tie-up, despite their long-standing rivalry

cbot.jpg

Finally the derivatives exchanges in Chicago appear to be doing what many market participants have been pushing them to do for years: merge.

It's all rumour and speculation at present, but as the Chicago Board of Trade readies itself for an initial public offering, an early tie-up looks increasingly likely.

Both of the city's two other major derivatives exchanges have, according to rumour, expressed an interest in merging with the CBOT, but it is the Chicago Mercantile Exchange, not the Chicago Board Options Exchange, that is the frontrunner.

Rivals

The two exchanges have been rivals for years, but a combination of new management at both of them, increased competition from European derivatives exchanges and spiralling technology costs have brought the CME and the CBOT closer together in the past two years.

The Merc, run by chairman Terry Duffy and CEO Craig Donohue, is the stronger of the two. It demutualized and launched its IPO at the end of 2002, since when its share price has risen from $35 to more than $300. The CBOT, assuming it were to stay independent for as long, would be unlikely to achieve such good returns.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree