businessweek: "Chicago: Afraid Of A Little Competition?" :D

Discussion in 'Trading' started by harrytrader, Jan 7, 2004.

  1. Commentary: Chicago: Afraid Of A Little Competition?


    Commentary: Chicago: Afraid Of A Little Competition?
    The exchanges are aiming to derail Eurex U.S.

    Like the hard-edged bruisers who work the trading pits, the leaders of the Chicago Board of Trade and the Chicago Mercantile Exchange are usually passionate advocates of raw, unfettered capitalism. In September, incoming Merc Chief Executive Craig S. Donohue invoked the Chicago school of economics -- the free-market philosophy that is fostered by academics such as Milton Friedman -- at a financial exhibition in Singapore. Extolling competition and innovation, Donohue argued that "as people who work in and around free-market mechanisms, we must be vigilant to adhere to these principles."

    So what did the two exchanges do when Eurex, the giant Swiss-German bourse, unveiled its plan to come to the Windy City and set up a no-pits, all-electronic market to trade U.S. Treasury futures? Forget all that highfalutin talk about competition and laissez-faire.

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