The growing debate over Chicago Mercantile Exchange (CME)'s proposed acquisition of Chicago Board of Trade (CBOT) has continued to expand as Commodity Markets Council (CMC) issued its support of the deal in a letter to US Department of Justice (DoJ). DoJ is in the process of examining the intended combination.
CMC's position counters Futures Industry Association (FIA) objections to the deal made only a week earlier, and illustrates a healthy debate that could help maintain or change the entire market structure for futures in the US. Many like CMC support the proposed mega-exchange to be named CME Group, for the cost efficiencies it will create on the IT side, as well as the potential for a more competitive exchange in the global context. Others however, including Wall Street heavyweights and FIA, are concerned that CME Group's size will deter future competition.
CMC, whose members include CBoT, New York Board of...