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Press release from CBOT, perhaps they have heard the footsteps....
EUREX AND CBOT CONSIDER RENEWED ALLIANCE
Chicago, May 18, 1999 * The two largest futures exchanges in the world are
considering a renewed alliance. The Board of Directors of the Chicago Board
of Trade (CBOT) voted overwhelmingly today to pursue a new alliance with
Eurex, the European derivatives exchange.
The vote by CBOT Directors came after officials from the Chicago exchange
met with their Eurex (Deutsche Borse) counterparts over the weekend in Monte
Rotondo, Italy. The exchanges had remained in contact since CBOT members in
late January turned down a previous proposal to partner with Eurex.
CBOT Chairman David P. Brennan said, "The time is now right for a business
alliance with Eurex and it has my complete support. After my meetings with
Eurex executives this weekend in Italy, I am confident that we have
reformatted an alliance with Eurex that will result in increased efficiency,
stronger technology and shared costs that will serve CBOT members well."
CBOT President & CEO Thomas R. Donovan, who also participated in the
meetings in Italy over the weekend, said, "This Eurex alliance will allow us
to meet and beat all competition, while continuing to grow our business and
provide global trading opportunities to our members."
Eurex CEO Jorg Franke said, "We still think that a cooperation with CBOT
would be advantageous for the exchanges and their memberships. But this is
something that the CBOT management and its members will have to decide."
CBOT Chairman Brennan said that he will schedule a membership vote on the
renewed Eurex alliance before the end of June and will communicate further
details of the proposed alliance to CBOT members in anticipation of that
vote.
Since the defeat of the original alliance proposal in January, and in light
of competitive changes since then, Chairman Brennan and CBOT senior
management, led by President Donovan, have been conducting a formal review
of potential exchange and technology alliances, including comprehensive
cost-benefit analyses. This review included an evaluation of the exchange's
own electronic trading system, Project A. It was concluded over the weekend
that a modified alliance with Eurex best served the CBOT.
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