NYSE & CBOE to Lay Down Their Swords This is an intriguing idea that I hadn't been aware of before. The NYSE & CBOE have a llong history of fighting bitterly then making up, and this might be another example of that. Imagine what the resulting exchange would look like, and how dominant it would be. An NYSE/Euronext/CBOE exchange might would be a powerhouse in stocks, options AND futures. They would definitely be the dominant exchange in the U.S. and would even have enough muscle to take on the CBOT/CME monstrosity.
I don't buy it. The NYSE & CBOE may be talking, but they will never join forces. NYSE already has the P-Coast options exchange, so why do they need the CBOE? I think they CME will buy the CBOE and NYSE will go their own way, especially now that they have purchased derivatives powerhouse EuroNext.liffe.
This makes sense to me. The CBOE needs a partner if they are going to survive against juggernauts like NYSE Euronext. Who better to ally yourself with than the juggernaut itself? NYSE has the financial muscle to make the CBOE more competitive and the CBOE has the SPX, the king of the options world. It makes sense for both of them. Discuss....
An NYSE/CBOE alliance makes sense, especially if they want to take on the CME/CBOT or take on NASDAQ when it enters the options markets. That would be one heck of a powerhouse if they decided to join forces, though. A force to be reckoned with, especially now that NYSE has Euronext. An NYSE/CBOE/Euronext exchange would dominate equities, options and futures on two continents. Not a bad mix.