Author: admin

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CME analysis

Summary

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

Analysis

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.

 

Posted on

Exchange Consolidation: DB/ISE

Summary

Deutsche Borse feel under pressure to make an acquisition

They are looking for a transformational business – particularly something that gives them a key footprint in the USA

This is a distinctly attractive transformational purchase for Deutsche Borse and gives ISE a huge opportunity to bring US trading to Europe

The aim is to create an across the board competitor to NYSE Euronext

Analysis

Having heard stories of the deal for some time (equally DB have spoken to every exchange in the USA about some sort of tie-up), certainly this deal makes sense for DB by giving it a key US asset, a brilliant technocratic and lean US business , and licences to trade in the major products and create a Trans Atlantic competitor to  NYSE Euronext, as well as putting pressure on NASDAQ to do a deal in Europe  and the derivatives business.