Banks-led futures exchange to be called ELX
Tue Mar 11, 2008 8:07pm EDT
NEW YORK, March 11 (Reuters) - A new low-cost futures exchange being launched by a dozen banks and trading firms to rival CME Group's (CME.N: Quote, Profile, Research) Chicago Mercantile Exchange, will be named ELX Electronic Liquidity Exchange, the group said on Tuesday.
The exchange, which had been operating under the working name "Four Seasons" since it was first announced in December, said it will provide a low-cost alternative to CME Group, which dominates trading in U.S. financial derivatives.
The next 2 articles sort of go together:
The CME Group Stays Aggressive
posted by Diane Eastabrook, Chicago Bureau Chief at 6:20 PM on 03/10/08
Chicago is the birthplace of futures trading. It all started 160 years ago at the Chicago Board of Trade. The merger last year of the Chicago Mercantile Exchange and the Chicago Board of Trade created the CME Group, now the world's largest futures exchange.
CME Group Chairman Terry Duffy traded live hogs for a decade-and-a-half before being tapped to head up the Merc six years ago, and CME Group last year. So, he knows a thing or two about life in the trading pits or, more appropriately now, life on the trading screen. While the CME saw its trading volume rise nearly 27% last year, Duffy knows his exchange can't rest on its laurels.
Terrence Duffy of the CME Group Shares His Strategy For Staying Ahead in the Futures Industry
Monday, March 10, 2008
SUSIE GHARIB: Stock market volatility, a credit crunch and global demand for commodities are sparking explosive growth in the futures industry. Global trading volume increased nearly 30 percent last year and is on track to exceed that number this year. At the top of the industry is Chicago's CME Group, headed by Terry Duffy. Recently Diane Eastabrook sat down with the exchange chairman, who talked about the importance of staying on top of this highly competitive industry.
DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: In the roller coaster world of futures trading, the CME Group keeps racing to higher summits. Last year's merger between the Chicago Mercantile Exchange and the Chicago Board of Trade created the world's largest futures exchange. In a few weeks, all open out cry trading at the Chicago mercantile exchange will move to new pits now being built at the Chicago Board of Trade. But as CME Group Chairman Terry Duffy prepares for his cross-town move, he talks about the CME's need to get even bigger.
TERRENCE DUFFY, CHAIRMAN, CME GROUP: It's not a question of bigger is better. The question is the efficiency to the marketplace and the way to achieve the efficiencies is through the saving of consolidation and passing those savings to your clients. We're not just competing with exchanges here in the United States. We're competing with exchanges throughout the world. We're competing with the over-the-counter markets. And we've got to become efficient and the way to create those efficiencies partially is through consolidation.