The merger of CME and CBOT creates compelling synergies for shareholders and futures traders

IIPM PUBLICATION
They were like estranged brothers, like opposite banks of a river that would never meet. Not surprisingly though, there was a feeling among their stakeholders that Chicago Board Of Trade (CBOT) and Chicago Mercantile Exchange (CME) – Chicago’s legacy commodity exchanges that have symbolized tremendous riches and misfortune to Chicago residents – were only delaying the inevitable. And the inevitable happened on October 17, when CBOT was taken over by CME for a whopping $8 billion to form the CME Group Inc. CBOT shareholders get 0.3006 CME shares per share of CBOT. Post merger, the CME Group, a $25 billion entity, will be the world’s largest commodity exchange in terms of market capitalization and the largest derivatives exchange with a combined volume of 1,444 million (2005 figures) futures contracts.

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Source : IIPM Editorial, 2006

Initiative :- An IIPM and Management Guru Professor Arindam Chaudhuri

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