Rival CME exchange

Why would anyone want to trade on an exchange run by IB's and citdel? There are already plenty of HF's that worry about them ripping off there positions already. At least they know thats not going on the exchanges.
 
First contracts are supposed to be energy. If they can make it cheaper for users/hedgers, they can probably take some business away from CME.
 
Saturday's Chicago Tribune had a blurb about that. If the group can work out the details of creating a clearing mechanism, it might have a teeny chance of being launched.
 
This has been tried before. Cantor (which owns ESPD) attemtped to do this seven or eight years ago (launch an electronic bond exchnange). It failed miserably.

I wholly endorse competition and it will be interesting to see how CME reacts. Expect more rate cutbacks at CME and watch the institutioinal money flow in (out) of CME stock.

I don't think this will materialize into much.
 
There was also the venture out in Bermuda which never took off.

It might be interesting to watch the price of memberships to see how seriously the threat is being taken. Bids have disappeared in some cbot memberships recently -maybe it's just a coincidence?

Personally I support competition -it's time that cme caught up with europeans exchanges and got rid of barriers to entry -such as the cost of membership.
 
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