Leading industry figures have expressed concern over CME Group
being handed further pricing power after revealing it was
negotiating an $11.3bn takeover of New York Mercantile Exchange
Patrice Blanc, CEO of the newly created Newedge, a joint
venture of Soc Gen and Calyon, said that Newedge is partially a
response to the ongoing exchange consolidation.
To be able to respond to this threat, thats exactly
what we are doing, Blanc said of the combination of Fimat
and Calyon Financial. If you have this super US exchange,
combining Nymex and CME, wow, thats pretty significant.
Id be curious what the Department of Justice (DOJ) has to
say about that.
Others questioned the value of the deal and what it would
provide the FCM community. The level of consolidation
means it is no longer about providing a service but simply
about getting bigger, said one source who did not want be
named. FCMs no longer have the relationship with
exchanges that they used to due to the size they have become.
Other than having one clearer, members will not benefit from
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