CME buying CBOT for $8 Billion

Quote from 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.
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I don't necessarily think that just because the YM is on the ECBOT it is low volume. Dow futures have been out what 1/12 to 1/15th as long. The ZN & ZB are 2 of the largest traded contracts and were on the ECBOT.

However they are behind the Eurodollar on the CME.

Make'em pretty, Chris
 
What a RIP OFF! Youtube was only $1.65 Billion. As if an exchange could be worth almost 5 times that amount! What were they thinking.
 
i never thought i would see the day..

the cultures are so different at those two exchanges, i hope it works. I'm kinda undecided whether to view this as good news or what.
 
Quote from ChiBondKing:

i never thought i would see the day..

the cultures are so different at those two exchanges, i hope it works. I'm kinda undecided whether to view this as good news or what.
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Definitely!!! The attitude at CME is "rob the customers blind" while the attitude at CBOT is "gouge the customers" :D :D :D
 
If Globex goes down I could use YM for hedging over eCBOT. If they merge the Dow future into Globex this possibility will disappear. But I think they wont do this.

Saico
 
This will create a monopoly in the futures markets! I hope the regulators block the deal. Unless Goldman, Lehman or Bear speak up all the futures traders are screwed. :mad:

-Neo
 
Lehman is one of the two advisors to the Merc on this deal (among other financial and legal blue chips getting a nice cut, er, advising), so it's probably unlikely that they'll speak up.
 
Only time will tell if it is good or bad for industry. If they get too greedy and hike up the fees, there will be newcomers who will take market share from them (Eurex US was a failure, but competition never sleeps). Look at what happened to COMEX gold. They refused to make it electronic to protect privileges of members and lost 50% volume to CBOT.
 
Wonder if there will be a compromise with types of orders. Maybe native stops for the Dow Minis?? or even Market orders for the Globex EMini's
 
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