The CME merging with the CBOT set to take place in 2007 is being touted as good for the exchanges and for Chicago. How will the merger affect the futures traders who trade their products? I wonder if there will be any immediate benefits to those trading their contracts such as the e-mini S&P or the US Ten Year note electronically.
(1) The merger should be a high-water mark for the stock in the intermediate-term. (2) Exchange fees will probably continue to go up. (3) The merger could have only happened while both exchanges were publicly held. (4) The bankers who are arranging the deal should benefit the most out of the deal. (5) It'll be interesting to see if other exchanges are absorbed into the merged entity. Stay tuned.
From what I've seen on the news, contracts currently being pit traded at the Merc will be moved to the CBOT, whereas contracts being traded electronically will be passed onto the Globex system. Here is where I'm not clear on: 1) Will the pit-traded big S&P be finally moved to Globex, or will this also go to the CBOT pits? 2) The Ags started traded electronically, will we still pit trading of the futures or will this move to Globex? Or, will the futures move to the CME's electronic trading system, but the options stay in the pits. 3) Whats going to happen to the Eurodollar options? 4) Any modifications to to contracts on the CBOT or contracts being switched to the other exchange?