CME analysis


CBOT future has key implications for CME
All futures exchanges have board issues


Jeff Carter provides an excellent overview.

I would simply add that:

1) CME – like many other exchanges which have made the move from mutual status to demutualised public company, has legacy issues surrounding some of its directors – this is commonplace amongst many such exchanges.

2) The big worry for CME right now muct be the future of the CME deal. Note that the counter-bid from ICE would mean CME losing the clearing fees they currently garner from CBOT and that would create a hole in the cashflow of the “Merc.”

ICE has already made it clear that with its acquisition of NYBOT it is keen to remove its clearing business from LCH.Clearnet in Europe to its own clearing house and will do so too if it wins the CBOT.


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