The growing debate over Chicago Mercantile Exchange (CME)'s
proposed acquisition of Chicago Board of Trade (CBOT) has
continued to expand as Commodity Markets Council (CMC) issued
its support of the deal in a letter to US Department of Justice
(DoJ). DoJ is in the process of examining the intended
CMC's position counters Futures Industry Association (FIA)
objections to the deal made only a week earlier, and
illustrates a healthy debate that could help maintain or change
the entire market structure for futures in the US. Many like
CMC support the proposed mega-exchange to be named CME Group,
for the cost efficiencies it will create on the IT side, as
well as the potential for a more competitive exchange in the
global context. Others however, including Wall Street
heavyweights and FIA, are concerned that CME Group's size will
deter future competition.
CMC, whose members include CBoT, New York Board of Trade and
New York Mercantile Exchange along with other exchanges as well
as FCMs, agriculture and agriculture-energy companies, issued
its letter on 6 February to the Department of Justice (DoJ) in
support of the deal. The letter, obtained by FO Week, outlines
a number key attributes supporting the deal including: a single
trading and clearing platform for CBoT and CME contacts and a
more liquid, competitive and innovative market in the global
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