Prof. Jayanth R. Varma’s Financial Markets Blog

A blog on financial markets and their regulation

Another electronic platform buys out another trading floor

The acquisition of CBOT (Chicago Board of Trade) by the CME
(Chicago Mercantile Exchange) fits a now familiar pattern of an
electronic platform buying out and gradually digesting a trading
floor. One of the big benefits of the deal will be that CBOT products
start trading on Globex. ICE (Intercontinental Exchange) buying NYBOT
(New York Board of Trade) was also in the same mould. Viewed in this
light, the deal between NYSE and Euronext will ultimately mean
that Euronext’s electronic platform absorbs the NYSE trading
floor though in financial terms, it is the NYSE that is buying
Euronext. Of course, the NYSE deal with Archipelago was also
similar, but Euronext would take the process much further.

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