Chicago Mercantile Exchange (CME)'s approach to buy Chicago Board of Trade (CBoT) (see FO Week Vol 11 No 42) could face problems ranging from monopolistic concerns to self-regulatory issues that could prevent or slow down the takeover process, though many experts said little would stand in the way of an eventual deal being completed.
Some regulatory experts saw few red flags that would prevent Justice Department, Federal Trade Commission or Commodity Futures Trading Commission (CFTC) from postponing or preventing the deal. The combined exchange would hold no liquid competing contracts, although should it post a full slate of interest rate, stock index and agricultural futures on one platform, it could quash any meaningful competition from other exchanges or upstarts. Mike Gorham, a former CME executive and former...