Chicago Board of Trade (CBoT) faced the possibility of
having to ditch its successful precious metal contracts last
week after its merger with Chicago Mercantile Exchange (CME)
because of the non-compete clause signed by New York Mercantile
Exchange (Nymex) when it listed its own rival metals suite on
CME's Globex platform.
The Chicago merger deal would see all electronic contracts
on both exchanges move to Globex (see story p12), including
contracts traded on the E-CBoT platform, the system used to
host CBoT's precious metal suite.
A source close to Nymex's metals division Comex told FO Week
that the non-compete clause between Nymex and CME would extend
to Comex metals contracts. This would not prevent CBoT's metals
contracts remaining on E-CBoT, powered by Atos Euronext Market
Solutions (AEMS) but that appeared unlikely, especially at a
licensing cost paid to AEMS of $20-25m per year.
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.