CME to acquire CBoT in long-awaited deal

Chicago Board of Trade (CBoT) and Chicago Mercantile Exchange (CME) have announced an agreement to merge by mid-2007 in an $8bn move which would create the world's largest derivatives exchange valued at $25bn.

The deal would see the new entity, CME Group, move all of its combined products onto CME's Globex trading platform and clearing while open outcry would remain on CBoT's trading floor. The Group expects pre-tax cost savings of over $125m. CBoT said that its current platform deal with Atos Euronext Market Solutions was costing it $20-$25m per year and...