Chicago Mercantile Exchange Holdings and CBOT Holdings are accelerating the tentative schedule for changes in their trading operations once the proposed merger of their respective futures exchanges closes. The proposed $8 billion merger is under review by the Department of Justice for antitrust considerations.
Upon completion of the merger, expected by midyear, the companies plan to migrate electronically traded CBOT products onto the CME Globex platform in phases beginning in the first quarter of 2008, according to a joint statement the exchanges released today at the Futures Industry Association annual conference in Boca Raton, Fla. CME and CBOT open outcry markets will be migrated onto a single trading facility located at CBOT in the second quarter of 2008, the statement said.
The migration to Globex had been scheduled for one year after the merger, and the consolidation of the floors up to 18 months after the close. Senior executives at the two exchanges said the timetable was moved up to yield savings as soon as possible. Analysts expect the merger to result in an unspecified number of layoffs in the Chicago financial industry.