Chicago Mercantile Exchange (CME) and Reuters have announced plans for a jointly owned centrally-cleared global FX marketplace, FXMarketSpace (FXMS). The venture, to be headquartered in London, was expected to be launched in early 2007.
In a statement the two firms said the new venture would "pool their expertise in data dissemination, distribution, trade matching and central counterparty clearing services? [and] capitalise on the growing demand for broader access to the FX market".
Under terms of the deal both parties were expected to contribute capital of up to $45m, to be paid in equal amounts in 2006 and 2007. Profitability was expected during 2008 with respective start up losses of $20m-25m. A $5m loss was expected to be incurred in 2006. Any profits made...