CME buying CBOT for $8 Billion

[late apex]

News just out this morning.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1vleKviD7D8

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.

 

[rufus_4000]

Quote from late apex:

News just out this morning.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1vleKviD7D8

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

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.

 

[local_crusher]

Shit.

this is NO GOOD for us !!!!!!!

 

[DblArrow]

Quote from local_crusher:

Shit.

this is NO GOOD for us !!!!!!!

That was kinda my first thought.

How do you spell monopoly?

Make 'em pretty, Chris

 

[murray t turtle]

Quote from late apex:

News just out this morning.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1vleKviD7D8

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.

===========
ES had better vol than YM anyway;
i can live with that

cool:

 

[Wayne Gibbous]

Sounds like, at least crusher doesn't like it.

Anybody else think this will suck for futs traders?

 

[Covert]

Better get you trading rights now, boys

 

[ddunbar]

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.

 

[nkhoi]

Quote from Wayne Gibbous:

Sounds like, at least crusher doesn't like it.

Anybody else think this will suck for futs traders?

of course it sunk they can crash the market any time they want.

 

[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."