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Analysis - CBoT goes for growth


While CBoT said in its S-1 filing with Commodity Futures Trading Commission that it had "no specific allocations" for the proceeds of its listing at the time of filing, the document did give some clues regarding the future growth plans of the exchange, as well as outlining a number of potential risks it could face in future.

The initial influx of cash from the IPO would be used, the filing said, for "general corporate purposes, including for development of our technology infrastructure, capital expenditures and working capital. We may also use a portion of the proceeds to acquire or invest in businesses, technologies, products or services, although no specific acquisitions are planned."

It added that acquisitions could occur "domestically or internationally and may include other exchanges [or] technology companies."

CBoT said later in the filing that it believed that deregulation and competition would be an ongoing pressure on exchanges to...

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