CME buying CBOT for $8 Billion

Discussion in 'Wall St. News' started by late apex, Oct 17, 2006.

  1. News just out this morning.

    Chicago Merc to Purchase Board of Trade for About $8 Billion

    By Annie Pinkert

    Oct. 17 (Bloomberg) -- The Chicago Mercantile Exchange agreed to buy the Chicago Board of Trade for about $8 billion, creating the world's biggest derivatives exchange.

    CBOT stockholders will have the right to receive 0.3006 shares of CME Class A common stock per share of CBOT Class A common stock or to elect an amount in cash per share equal to the value of the exchange ratio based on a ten day average of closing prices of CME common stock, the companies said in a statement sent on PRNewswire.

    -- Editor: Liedtka

    Last Updated: October 17, 2006 08:18 EDT

    Bloomberg reporting that the new company name will be "CME Group"... the storied CBOT name will be history.
  2. Wow, finally CME bought somebody, and it is a big one. Now bets will be one when eCBOT the system will be history, merged into Globex. I am thinking Q1, 2007.
  3. Shit.

    this is NO GOOD for us !!!!!!!
  4. That was kinda my first thought.

    How do you spell monopoly?

    Make 'em pretty, Chris
  6. Sounds like, at least crusher doesn't like it.

    Anybody else think this will suck for futs traders?
  7. Covert


    Better get you trading rights now, boys
  8. ddunbar

    ddunbar Guest

    Dow futures volume will probably quadruple if the CME adds it to globex. CBOT is such a relatively low volume exchange.

    Currently Dow futures volume is approx 1/12th to 1/15th the volume of the ES.
  9. nkhoi

    nkhoi Moderator

    of course it sunk they can crash the market any time they want. :mad:
  10. 832b


    All this means is higher fees as far as I'm concerned.

    Quote from PR Newswire

    "The merger will not impact core trading rights or membership or clearing privileges at either exchange."
    #10     Oct 17, 2006