Chicago Mercantile Exchange (CME) and Reuters have announced
plans for a jointly owned centrally-cleared global FX
marketplace, FXMarketSpace (FXMS). The venture, to be
headquartered in London, was expected to be launched in early
In a statement the two firms said the new venture would
"pool their expertise in data dissemination, distribution,
trade matching and central counterparty clearing services?
[and] capitalise on the growing demand for broader access to
the FX market".
Under terms of the deal both parties were expected to
contribute capital of up to $45m, to be paid in equal amounts
in 2006 and 2007. Profitability was expected during 2008 with
respective start up losses of $20m-25m. A $5m loss was expected
to be incurred in 2006. Any profits made from the venture would
be divided equally between the two parties.
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