Tuesday, June 20, 2006

CME's Potential Competion

Today, CME essentially has the Futures market cornered. However, when the NYX/Euronext deal closes and the new synergistic, revenue-diverse, powerhouse of the new transatlantic bourse is operating, the CME will have formidable competition.

A brief story from Dow Jones hit the wire a little earlier this afternoon. In the story by Margot Patrick, from Dow Jones Newswires CME CEO, Craig Donohue, is cited. Patrick's piece says, "Speaking to journalists at a briefing in London, Donohue said Euronext 'is already a very formidable exchange, well-run, with good technology and depth of expertise in derivatives. I always have viewed it as a significant competitor and this doesn't change that.'"

Of course this isn't really news and NYX's continued penetration into deriatives is no surprise. However, it's always nice to hear how Mr. Donohue feels about this landscape changing deal.

Also, it's worth noting the brilliant foresight of Jerry Putnam and Arca's amazing leadership team for having former CME CEO, James McNulty, become a director (since 8/2004). After AX and NYSE joined forces, Mr. McNulty was named to the NYSE board, on which he currently sits.

Mr. McNulty served as President and Chief Executive Officer of the Chicago Mercantile Exchange from February 2000 to December 2003, and of Chicago Mercantile Exchange Holdings Inc. from August 2001 to December 2003. He served as a director on the boards of Chicago Mercantile Exchange Holdings Inc. and the Chicago Mercantile Exchange from April 2002 to December 2003 and previously served as a non-voting member of these boards (click here for source).


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