5 - CBoT fails to maintain competition
CBoT responded aggressively to the launch of Eurex US, drastically reducing its exchange fees and introducing a range of other incentives. While recent developments have suggested that CBoT is in better financial shape than some suspected (see FO Week vol 9 no 9), if it cannot maintain its spending and focus it may give Eurex US an opportunity. How important is it that CBoT continues to maintain its competitiveness, and could any mistakes hand Eurex US an advantage?
Tom Kloet, chief operating officer, Fimat USA, New York: I have not seen any indication that the Board of Trade will not remain competitive. But if there are events I don't foresee that would limit their ability to be competitive, that would certainly help Eurex US. They have a proven trading platform, proven clearing platform, but unproven liquidity at this point.But I'm impressed by the Board of...