Check out the correlation on BOT and CME recently. Their in lock step. BOT will pop even if CME sells off on good news. This run has been anticipated by the high volume its doing on currency futures and the like. BOT keeps setting records with gold contracts that has to help the bottom line. They do 18% of all gold contracts. ISE and Options express are my other exchanges. 400 BOT at 85.75 nice little 3 week run.
The gold complex is nothing to the Board of Trade, how about the 10yr note doing 1,000,000 contracts a day the last three days along with about 200,000 in ten year options a day, not to mention the other contracts on the yield curve. The CBOT is all about interest rates, and when they get moving the volume becomes enormous.
CME own and develop their own exchage technology whereas CBOT lease their electronic trading infrastructure from Liffe for a lot of bucks. This may in time be seen as a double edged sword as not being tied to a single source may eventually be a godsend to the CBOT. Bob Ray (cbot boss)said recently in London that the cost of development for new Exchange technology developed and built from scratch would be $500million over a two year time period & with no certainty of success. Obviously this is a big money game and all results are still possible.My two pennies would marginally lean towards a deal being struck between the two and a similar outcome in Europe between Liffe & Eurex
You have to remember that Globex really started development in 1986 - which the mutations thereafter . It took the CME 10 years to get this right. It was a GIGANTIC investment ... although it did pay off.
Quite right prt and they deserve their pre eminent position for this investment.However as time moves on and their technology becomes more entrenched they will find it increasingly difficult to change or adapt to any groundbreaking tech shifts that occur.Cbot on the other hand can change with a switch of lease and allows them to remain flexible /independent etc.... actually i think that the whole space is ripe for a third party to enter into as i suspect that none of the exchanges are doing enough to cater for the tremendous growth that has occurred and will continue to increase.
Well let's see if MONDAYS move has merit--- BOT to hopefully make a leap with the CME on the monumental internet GOOGLE FED DAY.
(NYSE:ICE) If you wanna bet on an electronic oil contract. Here is a good short history: ICE, launched in 2000 primarily as an Internet-based platform for trading U.S. power and gas, bought London's International Petroleum Exchange (IPE) in 2001. Last year it abandoned nearly a quarter century of open-outcry dealing on the IPE, moving trading to its electronic platform in Atlanta.
Thank you Cramer for my nice pop you gave this one.... haha. 38th stock i have owned before he mentioned it on his show, you gotta keep track when he keeps callin out my stocks. Well BOT got the momentum and could still break through 118 resistance level (A valuation resistance level GPE) For most of my commidty stocks. Last week was a cut your gains and wach for new entry points kinda week (STEEL, OIL SERVICE, MINERS, NAT GAS, OIL). Since I never short. Watch for major US correction in the coming Weeks. S&P Test 1190 ( if breaks watch out). Dow could break 10700 support, but DOW 30 is actually my outlier this year.... MEGA CAPS out perform US market as a flight to safety in stocks begins to form by the major market movers who just hate more than 25% bonds and think gold is to high in the 625 AREA when all this shit hits the fan...Remember somtimes CASH IS KING. Just sayin sometimes you gotta just play with the years of profits and free stock you have gained.( eX. WHEN UP ON A 1000 SHARES SELL WHAT YOU GOT IN IT WHEN IT COMES TIME TO SELL) accumalation of wealth my friends while minimizing personal risk.