Introduction
Chicago Mercantile Exchange Holdings Inc. (CME) and CBOT Holdings, Inc. (CBOT) announced that they have signed a definitive agreement to merge the two organizations to create an extensive and diverse global derivatives exchange. The combined company will be named CME Group Inc., as part of CME/Chicago Board of Trade Company. The transaction is expected to close by mid-year 2007. This transaction will create a $25 billion derivatives powerhouse between the two leading Chicago future exchanges, and a liquid market with an average daily trading volume approaching 9 million contracts per day, representing approximately $4.2 trillion in notional value. The combination of the two companies will provide global access to a wide array of benchmark exchange-traded derivatives based on U.S. interest rate yield curve, equity indexes, foreign exchange, agricultural and industrial commodities, energy and alternative investment products such as weather and real estate. (CME, 2006) In......
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