Chicago Mercantile Exchange (CME)'s approach to buy Chicago
Board of Trade (CBoT) (see FO Week Vol 11 No 42) could
face problems ranging from monopolistic concerns to
self-regulatory issues that could prevent or slow down the
takeover process, though many experts said little would stand
in the way of an eventual deal being completed.
Some regulatory experts saw few red flags that would prevent
Justice Department, Federal Trade Commission or Commodity
Futures Trading Commission (CFTC) from postponing or preventing
the deal. The combined exchange would hold no liquid competing
contracts, although should it post a full slate of interest
rate, stock index and agricultural futures on one platform, it
could quash any meaningful competition from other exchanges or
upstarts. Mike Gorham, a former CME executive and former CFTC
commissioner, told FO Week that moving CBoT contracts under the
CME umbrella wasn't necessarily anti-competitive.
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