Whenever i walk into the CBOT at LaSalle and Jackson i always had a feeling of "THIS IS A VERY UNIQUE SPOT", a feeling of truly democratised people doing their thing. A place for a average screwball to "MAKE" tons of money. A place unlike Wallstreet, where corporations work the public with BS and earnings reports amazingly within a penny quarter after quarter... As the CME, CBOT etc go public, it is kinda like a child growing up and losing their innocent views of life. How many remember when you realized that Santa Claus was a fake? The tooth fairy was your dad? The Easter Bunny was a figment of someone elses mind? For a private exchange, a house of opportunity for "OTHERS" to make tons of money, to change and become a part of the flim flam street called Wallstreet just takes some of the flavor out of walking into the front doors of the Merc and the CBOT. Now this is an extreme example mind you but: What happens when you mix Ice cream with Horsedung? (shit,,, ) What flavor wins? I would have preferred the exchanges to stay private, felt more like a special club and or place...Just an opinion...
Agreed. Long ago when derivatives were still looking for price discovery equations the chicago exchanges were a very unique place. Now with most things done over the wire they really are not - at least to the degree that they were years ago. Things I dont miss: chalk dust, leaving the floor covered in human spit, and losing my voice from yelling all day ...... Yeah, those were the days ....
mmm this is starting to get dodgy.. p/e CME=40, for 2006 approx. 30.. CBOT shares outstanding, 52 mln vs. a profit of 37 mln.. so say close to $1 / share. Opening indication 75-80 gives a p/e of 80, close to a 100... seems very high to me compared to CME!! edit: 85-90 opening indication now!!! bizarre..
Anyone go long any BOT? Or sell their shares today? And, are there regulations about shorting IPO stocks? Currently there is a 100% maintenance margin requirement for BOT on most discount brokers, how long does that 100% requirement usually last? Just curious, I usually stay away from IPOâs. I got no position yet, but am planning on going long a few hundred in the IRA account soon.
CBoT seat price has correlated with CME share price since the Merc's IPO, so a whole lot of that growth is already priced in. Also, CME owns its own clearinghouse and its own electronic matching engine. CBoT uses CME's clearinghouse and Euronext Liffe's matching engine. IMO, long term CBoT's value proposition is nil; in short, it's a liquidity pool and a fee. Bets chance of making a killing on this one is a purchase by the Merc, but in short I wouldn't buy the "it'll do what CME did" argument for a second.
Made good money trading this intraday. Bring on public offerings of the NYMEX and CBOE and let me make some money off of those. The average joe is starting to know what derrivs. are, I think revenues for all the major exchanges will continue to increase and we will see more CME stock stories from these holding companies.